ENSO and Mexican children
                     Medium-term effects of early-life weather shocks
                           on cognitive and health outcomes


                                      Arturo Aguilar       Marta Vicarelli

                                              Harvard University

                                                Yale University


                                            November 29, 2012




Aguilar & Vicarelli (Harvard, Yale)          ENSO and Mexican children       November 29, 2012   1 / 63
Motivation

       Conditions affecting individuals at early stages of life tend to have long-term
       effects
            Health, education, socioeconomic status (Maccini and Yang, 2009)
            Physical and mental disabilities (Almond, 2006; Almond and
            Mazumder, 2011)

       Weather shocks are the most important self-reported risk faced by rural
       households (Skoufias, 1997; Dercon and Krishnan, 2000; Gine, Townsend
       and Vickery, 2008)

       El Ni˜o Southern Oscillation (ENSO)
            n
            Recurring climatic event with a 5 to 7 year cycle
            Affects hydro-meteorological patterns causing extreme weather events
            (e.g. droughts, floods, heat waves)
            Global impacts (Cane et al., 2004)


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   2 / 63
Research Questions

  1    Estimate the effects of ENSO-related weather shocks in early-life on
       medium-term individual well-being (human capital formation):
            Cognitive development
            Health and physical development
            Motor skills

  2    Investigate possible mechanisms through which weather shocks could be
       driving these results
             Income
             Nutrition
             Health

  3    Assess the potential mitigating effects of a randomized poverty reduction
       intervention: Mexico’s Progresa Conditional Cash Transfer program



Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   3 / 63
Contributions and related literature

  1    Long-term effects of shocks in early-childhood
           Maccini and Yang (2009), Almond (2006), Almond and Mazumder
           (2011)
           Contribution: Examines specific medium-term effects on human-capital
           formation (e.g. memory, language development) which might be
           driving long-term effects

  2    Role of weather shocks
            Maccini and Yang (2009), Munshi (2003), Baez and Santos (2007)
            Contribution: Use ENSO-related extreme rain shocks at the end of the
            agricultural season to identify exogenous income shocks

  3    Progresa’s effects
            Fernald et al. (2008), Fernald and Gertler (2005), Gertler (2004)
            Contribution: Determine if the Conditional Cash Transfers provided
            mitigation effects to children affected by the shocks

Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   4 / 63
A glimpse at the results


Main Results

Four to five years after the shock, exposed children show:

       Lower cognitive abilities (11 to 21 percent)
               Receptive language, working memory, and visual-spatial processing


       Lower weight (0.28 to 0.38 kg) and lower height (1.1 to 1.8 cm)

       Minor reduction in gross motor skills




Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   5 / 63
A glimpse at the results


Mechanisms
The ENSO-related weather shock had contemporaneous and persistent effects
       Income: contraction up to 2 years after the shock
       Food consumption and diet composition: negatively affected
       Health: no significant self-reported effect immediately after the shock



Role of Progresa
       No evidence of Progresa’s mitigating effects has been found




Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   6 / 63
Outline


1   Background

2   Data

3   Empirical specification

4   Results

5   Mechanisms

6   The role of Progresa

7   Conclusions


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   7 / 63
El Ni˜o Southern Oscillation
     n

       ENSO is a non-regular cyclical climatic pattern associated to changes in
       tropical Pacific Ocean sea surface temperature and pressure.

       ENSO generates weather extremes across the globe, especially in countries
       bordering the Pacific Ocean.
            El Ni˜o 1997-1998
                 n
            La Ni˜a 1998-1999
                  n

       Sizeable effects in weather-sensitive industries (e.g. fishing and agriculture)
       (Cane et al., 2004)

       Large effects for developing countries that rely on rain-fed agriculture (90%
       of households in our sample)

       Use extreme floods during the harvest season as exogenous income shocks


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   8 / 63
El Ni˜o Southern Oscillation
     n




Figure: Satellite image showing sea surface heights relative to normal conditions. Red and
white areas are related to above average sea surface temperatures and blue and purple areas to
below average sea surface temperatures


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children          November 29, 2012   9 / 63
Outline


1   Background

2   Data

3   Empirical specification

4   Results

5   Mechanisms

6   The role of Progresa

7   Conclusions


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   10 / 63
Data: Weather


       Gridded precipitation data
            Source: UEA CRU TS2p1 (Mitchell, 2005)
            Temporal resolution: monthly
            Spatial resolution: 0.5 x 0.5 degrees

       We calculate the Monthly Standardized Anomaly
           Anomaly = difference with respect to 1960-1999 average levels
           Standardized = measured in standard deviation terms

       Weather shock definition:
           rain shock = 1 if standardized anomaly for Sep-Oct > 0.7
           Sensitivity tests using different thresholds




Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   11 / 63
Data: Weather

       Standardized anomaly is above 0.7 about 16% of the time

                           Standardized anomaly distribution (Sept-Oct)




Aguilar & Vicarelli (Harvard, Yale)     ENSO and Mexican children    November 29, 2012   12 / 63
Data: Weather

                                  Monthly Precipitation Standardized Anomalies

                  4        Growing Season
                       A   M J   JJ    A   S   O   N
                  2
                  0
                  -2




                                      97                        98             99        Year




Figure: Maize calendar: Planting season (Apr-Jun). Moisture sensitive season
(Jul-Aug). Maturation and Harvesting (Sep-Nov)
Aguilar & Vicarelli (Harvard, Yale)                ENSO and Mexican children        November 29, 2012   13 / 63
Data: Weather

             Precipitation Standardized Anomalies (UEA CRU Ts2p1) 1999


                                    30˚N
                                    25˚N
                         Latitude
                                    20˚N
                                    15˚N




                                       120˚W          115˚W      110˚W         105˚W         100˚W          95˚W     90˚W
                                                                                    Longitude
                  Oct 1999


                  -2.4                 -2      -1.6    -1.2   -0.8   -0.4       0      0.4      0.8   1.2      1.6   2      2.4
                                                                            precipitation



Aguilar & Vicarelli (Harvard, Yale)                              ENSO and Mexican children                               November 29, 2012   14 / 63
Data: Weather

                                                          We spatially joined
                                                    Weather and Socioeconomic Data




                                                                                              24°0'0"N
              30˚N




                                                                                              22°0'0"N
              25˚N
   Latitude




                                                                                              20°0'0"N
              20˚N
              15˚N




                                                                                              18°0'0"N

                 120˚W   115˚W   110˚W      105˚W     100˚W          95˚W      90˚W
                                              Longitude
Oct 1999                                                                                           104°0'0"W          102°0'0"W         100°0'0"W         98°0'0"W   96°0'0"W




                                     -2.4    -2     -1.6      -1.2    -0.8   -0.4       0     0.4              0.8   1.2          1.6   2           2.4
                                                                                    precipitation




Aguilar & Vicarelli (Harvard, Yale)                                    ENSO and Mexican children                                                     November 29, 2012          15 / 63
Data: Weather

             1999 Precipitation Standardized Anomalies (UEA CRU Ts2p1)
                     September                          October

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Aguilar & Vicarelli (Harvard, Yale)                                                                                                  ENSO and Mexican children                                                                          November 29, 2012                                16 / 63
Data: Weather
  September-October Precipitation Standardized Anomalies (UEA CRU Ts2p1)
                                      La Nina Year                                                                                                                                                                                                                                1999
                                                                           100°0'0"W                                                          95°0'0"W




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                                                                                                                                         .5




                                                                                                                                                                 5
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                                                                                                                  <-




                                                                                                           	
  
Aguilar & Vicarelli (Harvard, Yale)                                                                                            ENSO and Mexican children                                                                                                                                                      November 29, 2012   17 / 63
Data: Weather

           Average La Nina Precipitation Standardized Anomalies (UEA CRU Ts2p1)
                         September                         October
                                                  100°0'0"W                                                                   95°0'0"W                                                                 100°0'0"W                                                            95°0'0"W




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 Aguilar & Vicarelli (Harvard, Yale)                                                                                          ENSO and Mexican children                                                                              November 29, 2012                                  18 / 63
ENSO historical precipitation patterns

       No evidence that the same regions are affected at every ENSO
       occurrence by extreme rain shocks




Figure: Standardized precipitation anomalies of September 1998 with respect to standardized
precipitation anomalies of past ENSO occurrences



Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children       November 29, 2012   19 / 63
ENSO historical precipitation patterns
                   30˚N




                                                                                                     30˚N
                   25˚N




                                                                                                     25˚N
        Latitude




                                                                                          Latitude
                   20˚N




                                                                                                     20˚N
                   15˚N




                                                                                                     15˚N
                      120˚W   115˚W   110˚W   105˚W     100˚W    95˚W     90˚W                          120˚W     115˚W     110˚W         105˚W       100˚W         95˚W   90˚W
                                                Longitude                                                                                   Longitude
     Sep 1974                                                                          Oct 1976
                   30˚N




                                                                                                     30˚N
                   25˚N




                                                                                                     25˚N
        Latitude




                                                                                          Latitude
                   20˚N




                                                                                                     20˚N
                   15˚N




                                                                                                     15˚N




                      120˚W   115˚W   110˚W   105˚W     100˚W    95˚W     90˚W                          120˚W     115˚W     110˚W         105˚W       100˚W         95˚W   90˚W
                                                Longitude                                                                                   Longitude
     Oct 1981                                                                          Sep 1984




                              -2.4     -2     -1.6     -1.2     -0.8    -0.4       0          0.4               0.8       1.2       1.6           2           2.4
                                                                               precipitation
Aguilar & Vicarelli (Harvard, Yale)                                ENSO and Mexican children                                                          November 29, 2012           20 / 63
Data: Progresa Socioeconomic Survey


       longitudinal dataset: Progresa’s evaluation survey
             Baseline 1997
             Follow-up surveys 1998-2003, and 2007
             Socioeconomic indicators, Health, Migration, Transfers...


       506 rural villages in central Mexico
            in 7 states: Guerrero, Hidalgo, Michoacan, Puebla, Queretero, San Luis
            Potosi, and Veracruz
            More than 90% of households depend on rainfed agriculture


       Main outcomes in this study collected in 2003
           259 villages, 5,000 households, 6,300 children
           Anthropometric and cognitive development



Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   21 / 63
Data: village locations
24°0'0"N
22°0'0"N
20°0'0"N
18°0'0"N




Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   22 / 63
Data: Main outcomes



       Data collected from children aged 2-6

       Obtained by certified nurses

       Measures of interest:
           1   Objective anthropometric measures: height and weight
           2   Health indicators: hemoglobin level (anemia) and self-reported sick
               days
           3   Language and cognitive development
           4   Gross motor skills: McCarthy Scale of Children’s Abilities




Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children    November 29, 2012   23 / 63
Data: Cognitive Development Indicators

 TEST                                        Predicts               Negative Factors         Critical Years


 Peabody
 Picture/Vocabulary                   reading comprehension          stress, nutrition             0-2
 Receptive Language                      learning abilities        family environment


 Woodcock-Munoz 1                       future vocabulary
 Working memory                          second language             stress, nutrition             0-2
 associative memory                         arithmetic


 Woodcock-Munoz 2                             severe
 Short-term memory                     cognitive disabilities              genetic                  -


 Woodcock-Munoz 3                   problem solving skills
 Visual spatial thinking              abstract thinking              stress, nutrition             0-2
                                  secondary edu outcomes




Aguilar & Vicarelli (Harvard, Yale)            ENSO and Mexican children                 November 29, 2012    24 / 63
Descriptive Statistics: Dependent Variables

         Variables                       Num obs        Mean       Std Dev   Min       Max

         Anthropometric Indicators
         weight (lb)                       6233         33.33      6.6580    16.31    122.14
         height (in)                       6209         37.93      3.5430    16.81     56.54
         stunt (binary)                    4684          0.38      0.4842      0         1
         anemia (binary)                   6215          0.27      0.4415      0         1
         number of sick days               5598          1.39      2.7874      0        30


         Cognitive Dev. Tests (logs)
         language (Peabody)                4671         2.25       0.8946     0        4.37
         W memory (Woodcock 1)             6010         2.17       0.8818     0        4.17
         ST memory (Woodcock 2)            5747         2.95       0.6293     0        4.01
         visual-spatial (Woodcock 3)       4988         2.30       0.5959     0        3.74


         Motor Skills Tests
         balance (seconds)                 5943         8.29       5.0580     0         45
         walking backward (binary)         6088         0.89       0.3180     0          1
         walking straight (binary)         6041         0.83       0.3735     0          1


Aguilar & Vicarelli (Harvard, Yale)    ENSO and Mexican children             November 29, 2012   25 / 63
Descriptive Statistics: Explanatory Variables


         Variables                         Num obs        Mean    Std Dev      Min     Max

         Weather variables
         rain shock                          8173          0.61    0.49         0        1


         Socio-economic characteristics
         HH poverty index 1997               5254        703.06   134.67       237     1239
         HH size in 1997                     5268         6.08      2.56        1       24
         age (months)                        8173         50.26    16.44        19      82
         gender (=1 if male)                 8173         0.51      0.50        0       1

         language of HH head
         * spanish & indigenous              5281           0.4    0.49         0        1
         * only indigenous                   5281          0.04    0.18         0        1




Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children             November 29, 2012   26 / 63
Descriptive Statistics: Explanatory Variables

                 “coh” stands for “cohort” and indicates children born in a given year

                 Variables              Num obs     Mean       Std Dev   Min      Max

                 coh97                   8173        0.17       0.3793    0         1
                 coh98                   8173        0.21       0.4099    0         1
                 coh99                   8173        0.22       0.4128    0         1
                 coh00                   8173        0.21       0.4085    0         1
                 coh01                   8173        0.18       0.3863    0         1

                 Interactions with rainfall shocks (binary)

                 coh97*rain     shock    8173        0.11       0.3110    0         1
                 coh98*rain     shock    8173        0.13       0.3351    0         1
                 coh99*rain     shock    8173        0.13       0.3388    0         1
                 coh00*rain     shock    8173        0.13       0.3341    0         1
                 coh01*rain     shock    8173        0.11       0.3186    0         1




Aguilar & Vicarelli (Harvard, Yale)       ENSO and Mexican children            November 29, 2012   27 / 63
Outline


1   Background

2   Data

3   Empirical specification

4   Results

5   Mechanisms

6   The role of Progresa

7   Conclusions


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   28 / 63
Empirical Specification

       Assumption: Weather shocks exogeneity (TESTED)

       The following specification is used to identify effects of weather shocks in
       early childhood:

                               2001
                     Yij =            γk coh kij + ηk rain shockj ∗ coh kij + βXij +   ij
                             k=1997

       where
               Yij is the outcome for individual i in pixel j
               coh kij is an indicator for individual i being born on year k
               rain shockj is an indicator for weather shocks in j pixel
               Xij are controls for individual i in pixel j
               SEs are clustered by pixel


Aguilar & Vicarelli (Harvard, Yale)        ENSO and Mexican children       November 29, 2012   29 / 63
Weather Shock Exogeneity Test

                               binary           Mean                  Mean           Difference         t − stat
                              variable    (rain shock = 0)      (rain shock = 1)

 Village characteristics
 male wages                                    318.3                    303.2           15.17          1.248
 female wages                                  41.81                    45.44          -3.629          -0.980
 Household characteristics and assets
 size                                         6.748                     6.827          -0.0792         -0.683
 poverty index 1997                           712.7                      705.5           7.189          0.670
 owns land (ha)                                1.749                     1.727         0.0215          0.128
 owns the house                               0.940                     0.936          0.00387          0.338
 electricity                                  0.776                     0.761           0.0154          0.373
 water                                        0.0395                    0.0448        -0.00533         -0.567
 tv                                           0.617                     0.471         0.147***          4.360
 vehicle                                      0.136                     0.0599       0.0764***          4.615
 donkeys                                      0.421                      0.384          0.0371          0.691
 bullocks                                      0.130                    0.129        0.000910          0.0158
 sheep                                        1.695                     1.606           0.0888          0.234
 chickens                                     6.719                      7.933        -1.213**         -2.666
 pigs                                         1.151                      1.322          -0.171         -1.160
  * p < 0.10, ** p < 0.05, *** p < 0.01

Aguilar & Vicarelli (Harvard, Yale)         ENSO and Mexican children              November 29, 2012      30 / 63
Weather Shock Exogeneity Test

                                           Mean                   Mean        Difference      t − stat
                                      rain shock = 0         rain shock = 1

     Head of household characteristics

     gender (=1 if male)                      0.904                0.889        0.0147         1.199
     age (years)                              43.11                41.79         1.319         1.965
     education (years)                        3.759                3.597         0.162         1.028
     agricultural worker                      0.701                0.738       -0.0373        -1.386
     language spoken:
        Indigenous                        0.00681                 0.0357      -0.0289***      -3.469
        Spanish and Indigen.               0.177                   0.397       -0.220***      -4.704

     Household migratory characteristics

     temporary migrants                       0.0463              0.0392       0.00715        1.407
     permanent migrants to:
             US                               0.0392              0.0119       0.0274*        2.548
             Mexico                           0.0236              0.0221       0.00151        0.186

      * p < 0.10, ** p < 0.05, *** p < 0.01



Aguilar & Vicarelli (Harvard, Yale)           ENSO and Mexican children           November 29, 2012     31 / 63
Empirical Specification - Robustness Checks



       Exogeneity Test for weather shocks: regression model that includes variables
       with different means

       Spatial Correlation addressed using Conley Standard Errors

       Test possible role of shocks occurred after 1999

       Serial Correlation tests and corrections




Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   32 / 63
Outline


1   Background

2   Data

3   Empirical specification

4   Results

5   Mechanisms

6   The role of Progresa

7   Conclusions


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   33 / 63
Results: Anthropometric indicators
                                      weight (lb)         height (in)     stunting    anemia      days sick
                                          (1)                 (2)            (3)        (4)          (5)

        coh97 x rain shock                -0.613              -0.466**          .     -0.0323       0.346
                                         [0.6137]             [0.2190]          .     [0.0624]    [0.2652]

        coh98 x rain shock               -0.837*              -0.709***    0.127*     -0.0132     0.00235
                                         [0.4806]              [0.2176]   [0.0722]    [0.0336]    [0.1813]

        coh99 x rain shock                -0.733              -0.555**    0.140**     0.00325      -0.232
                                         [0.4399]             [0.2483]    [0.0672]    [0.0368]    [0.1860]

        coh00 x rain shock                -0.145              -0.426*     0.140**     0.00877     -0.00481
                                         [0.3484]             [0.2485]    [0.0630]    [0.0338]    [0.2043]

        coh01 x rain shock                -0.468               -0.189      0.115*     0.00671      0.0899
                                         [0.3742]             [0.2052]    [0.0653]    [0.0616]    [0.2517]

        Observations                      3729                  3705          2777     3765         3377
        R2                                 0.58                 0.76          0.09      0.03        0.02
        Mean                              33.42                 38.08         0.384    0.273        1.282
        Controlling for household and individual characteristics
        Standard errors clustered by gridcell [in brackets]
        * p < 0.10, ** p < 0.05, *** p < 0.01
Aguilar & Vicarelli (Harvard, Yale)               ENSO and Mexican children               November 29, 2012   34 / 63
Results: Anthropometric indicators - Conley SEs
                                      weight (lb)       height (in)     stunting   anemia      days sick
                                          (1)               (2)            (3)       (4)          (5)

       coh97 x rain shock               -0.613            -0.466**           .     -0.0323      0.346
                                       (0.6565)           (0.2629)                  (0.6)      (0.2421)

       coh98 x rain shock               -0.837*          -0.709***       0.127*     -0.0132    0.00235
                                       (0.5352)           (0.2475)      (0.0712)   (0.0394)    (0.1781)

       coh99 x rain shock               -0.733            -0.555**      0.140**    0.00325      -0.232
                                       (0.4924)           (0.2826)      (0.0720)   (0.0364)    (0.2170)

       coh00 x rain shock               -0.145             -0.426*      0.140**    0.00877     -0.00481
                                       (0.3378)           (0.2514)      (0.0658)   (0.0368)    (0.2007)

       coh01 x rain shock               -0.468             -0.189       0.115*     0.00671      0.0899
                                       (0.3991)           (0.1867)      (0.073)    (0.0716)    (0.2211)

       Observations                      3729               3705         2777       3765         3377
       R2                                 0.58              0.76          0.09      0.03         0.02
       Mean                              33.42              38.08        0.384      0.273        1.282
       Controlling for household and individual characteristics
        * p < 0.10, ** p < 0.05, *** p < 0.01


Aguilar & Vicarelli (Harvard, Yale)              ENSO and Mexican children             November 29, 2012   35 / 63
Results: Cognitive development indicators (log)
                                        Peabody Test                   Woodcock-Mu˜oz Test
                                                                                    n
                                                                 working  short term  visual-spatial
                                            language             memory    memory        thinking
                                               (1)                 (2)       (3)            (4)

          coh97 x rain shock                -0.216**             -0.194*       -0.000168      -0.133***
                                            [0.0967]             [0.1042]       [0.0257]       [0.0424]

          coh98 x rain shock               -0.209***            -0.199***        0.0139       -0.121***
                                            [0.0601]             [0.0644]       [0.0322]       [0.0335]

          coh99 x rain shock                -0.148**            -0.162***       -0.0532        -0.111**
                                            [0.0682]             [0.0598]       [0.0370]       [0.0493]

          coh00 x rain shock                -0.0258              -0.147**        0.0173        -0.143**
                                            [0.0672]             [0.0568]       [0.0374]       [0.0541]

          coh01 x rain shock                 -0.225              -0.0300        -0.0755         0.0364
                                            [0.6933]             [0.0549]       [0.0552]       [0.0899]

          Observations                        2835                   3522         3385           2967
          R2                                  0.33                   0.32         0.48           0.38
          Controlling for household and individual characteristics
          SE clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01
Aguilar & Vicarelli (Harvard, Yale)              ENSO and Mexican children                 November 29, 2012   36 / 63
Results: Cognitive dev indicators (log) - Conley SEs
                                        Peabody Test                   Woodcock-Mu˜oz Test
                                                                                    n
                                                                 working  short term  visual-spatial
                                            language             memory    memory        thinking
                                               (1)                 (2)       (3)            (4)

          coh97 x rain shock                -0.216**              -0.194*    -0.000168      -0.133***
                                            (0.1055)             (0.1199)     (0.0288)       (0.0496)

          coh98 x rain shock               -0.209***            -0.199***     0.0139        -0.121***
                                            (0.0679)             (0.0817)    (0.0363)        (0.0398)

          coh99 x rain shock                -0.148**            -0.162***     -0.0532        -0.111**
                                            (0.0651)             (0.0649)    (0.0357)         (0.058)

          coh00 x rain shock                 -0.0258             -0.147**     0.0173         -0.143**
                                            (0.0576)             (0.0565)    (0.0356)        (0.0486)

          coh01 x rain shock                 -0.225              -0.0300      -0.0755         0.0364
                                           ( 0.6910)              (0.66)     (0.0493)        (0.1003)

          Observations                        2835                   3522      3385            2967
          R2                                  0.33                   0.32      0.48            0.38
          Controlling for household and individual characteristics
          * p < 0.10, ** p < 0.05, *** p < 0.01
Aguilar & Vicarelli (Harvard, Yale)              ENSO and Mexican children               November 29, 2012   37 / 63
Results: Motor skills indicators
                                                  balance           ability to          ability to
                                                 (seconds)        walk backward        walk straight
                                                    (1)                (2)                  (3)

                   coh97 x rain shock            -0.718**               0.0228             0.0140
                                                 [0.3420]              [0.0162]           [0.0117]

                   coh98 x rain shock              -0.164               0.0136            0.0220*
                                                  [0.2609]             [0.0130]           [0.0118]

                   coh99 x rain shock              -0.357               0.0174           -0.0371**
                                                  [0.3408]             [0.0155]           [0.0156]

                   coh00 x rain shock              -0.210              -0.0216            -0.00701
                                                  [0.3739]             [0.0283]           [0.0374]

                   coh01 x rain shock              0.0831              -0.0308            -0.0514
                                                  [0.4352]             [0.0563]           [0.0509]

                   Observations                     3563                 3693               3663
                   R2                                0.33                0.16                0.24
                   Mean                             8.286                0.891              0.843
                   Controlling for household and individual characteristics
                   SE clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01
Aguilar & Vicarelli (Harvard, Yale)              ENSO and Mexican children                    November 29, 2012   38 / 63
Results: Motor skills indicators - Conley SEs
                                                  balance           ability to     ability to
                                                 (seconds)        walk backward   walk straight
                                                    (1)                (2)             (3)

                   coh97 x rain shock            -0.718**               0.0228       0.0140
                                                 (0.3686)              (0.0186)     (0.0109)

                   coh98 x rain shock              -0.164               0.0136      0.0220*
                                                  (0.2628)             (0.0119)     (0.0104)

                   coh99 x rain shock              -0.357               0.0174     -0.0371**
                                                  (0.3452)             (0.0152)     (0.0134)

                   coh00 x rain shock              -0.210               -0.0216     -0.00701
                                                  (0.2811)             (0.0246)     (0.0351)

                   coh01 x rain shock              0.0831              -0.0308       -0.0514
                                                  (0.3796)             (0502)       (0.0488)

                   Observations                     3563                 3693        3663
                   R2                                0.33                0.16         0.24
                   Mean                             8.286                0.891       0.843
                   Controlling for household and individual characteristics
                   * p < 0.10, ** p < 0.05, *** p < 0.01
Aguilar & Vicarelli (Harvard, Yale)              ENSO and Mexican children             November 29, 2012   39 / 63
Summary of findings


       Anthropometric indicators
           lower weight for children born in 1998
           lower height for children born between 1997 and 2000.
           higher probability of stunting


       Cognitive development indicators: lower test scores in
           language
           working memory
           visual-spatial thinking


       Motor skills indicators:
           No evidence of effects from weather shocks



Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   40 / 63
Outline


1   Background

2   Data

3   Empirical specification

4   Results

5   Mechanisms

6   The role of Progresa

7   Conclusions


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   41 / 63
Mechanisms

Explored mechanisms through which rainfall shocks may affect child physical and
cognitive development:

       income constraints

       reception of formal and informal transfers:
               government aid,
               food and non-food transfers from family and neighbors

       contractions in food consumption: value (pesos) and amount (kg)

       changes in diet composition: calories, proteins, etc.

       child health and medicine expenditures



Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   42 / 63
Mechanisms: Income

          Effect of rainfall shocks on income at different time periods (years)


                               Dependent Variables                    Coeff           Std Dev

                               Total household income (log)

                               incomet                             -0.395***         (0.052)
                               incomet+1                           -0.291***         (0.052)
                               incomet+2                           -0.263***         (0.042)


                               HH income from agriculture (log)
                               agricultural incomet                -0.276***         (0.047)
                               agricultural incomet+1              -0.268***         (0.056)
                               agricultural incomet+2              -0.181***         (0.044)

                               Each line shows the result of separate regressions
                               Controlling for household head and household characteristics
                               Standard errors clustered by gridcell [in brackets]
                                * p < 0.10, ** p < 0.05, *** p < 0.01


Aguilar & Vicarelli (Harvard, Yale)              ENSO and Mexican children                     November 29, 2012   43 / 63
Mechanisms: Transfers


                  Effect of rainfall shocks on formal and informal transfers
                                   at the time of the shock
           Variables                                                      Binary     Coeff         Std Dev

           =1 if household received government aid
           food aidt                                                               0.047**        (0.021)
           other aidt                                                               0.006         (0.034)

           =1 if household received informal transfers
           from familyt                                                              -0.042       (0.043)
           from neighbort                                                          -0.028***      (0.009)

           Each line shows the result of separate regressions
           Controlling for household head and household characteristics
           Standard errors clustered by gridcell [in brackets]
            * p < 0.10, ** p < 0.05, *** p < 0.01




Aguilar & Vicarelli (Harvard, Yale)               ENSO and Mexican children                 November 29, 2012   44 / 63
Mechanisms: Food consumption

                      Effect of rainfall shocks on food consumption (log)
                               at different time periods (years)
                    Food consumption is normalized using Adults Equivalents (AE)

                          Variables                                       Mean           Std Dev


                          food consumptiont (pesos)                    -0.100***         (0.035)
                          food consumptiont+1 (pesos)                  -0.115***         (0.034)
                          food consumptiont+2 (pesos)                  -0.149***         (0.055)

                          food consumptiont (kg)                          -0.027         (0.036)
                          food consumptiont+1 (kg)                         0.003         (0.030)
                          food consumptiont+2 (kg)                         0.042         (0.057)

                          Each line shows the result of separate regressions
                          Controlling for household head and household characteristics
                          Standard errors clustered by gridcell [in brackets]
                           * p < 0.10, ** p < 0.05, *** p < 0.01



Aguilar & Vicarelli (Harvard, Yale)             ENSO and Mexican children                     November 29, 2012   45 / 63
Mechanisms: Diet composition
                        Effect of rainfall shocks on diet composition (log)
                                 at different time periods (years)
                    Food consumption is normalized using Adults Equivalents (AE)

                 Variables                                                        Coeff       Std Dev

                 tortilla consumptiont (pesos)                                   0.132**     (0.054)
                 tortilla consumptiont+1 (pesos)                                  -0.085     (0.064)
                 tortilla consumptiont+2 (pesos)                                -0.218***    (0.069)

                 animal consumptiont (pesos)                                      -0.052     (0.085)
                 animal consumptiont+1 (pesos)                                   -0.145*     (0.075)
                 animal consumptiont+2 (pesos)                                  -0.171**     (0.076)

                 fruit and vegetable consumptiont (pesos)                       -0.200***    (0.057)
                 fruit and vegetable consumptiont+1 (pesos)                       -0.078     (0.049)
                 fruit and vegetable consumptiont+2 (pesos)                      -0.143**    (0.056)

                 Each line shows the result of separate regressions
                 Controlling for household head and household characteristics
                 Standard errors clustered by gridcell [in brackets]
                 * p < 0.10, ** p < 0.05, *** p < 0.01
Aguilar & Vicarelli (Harvard, Yale)               ENSO and Mexican children                 November 29, 2012   46 / 63
Mechanisms: Health and medicine expenditures

      Effect of rainfall shocks on child health and medicine expenditures (log)
                           at different time periods (years)

                         Variables                                             Coeff     Std Dev

                         children     reported sick
                         children     sickt (% in the HH)                  0.011        (0.022)
                         children     sickt+1 (% in the HH)                0.025        (0.027)
                         children     sickt+2 (% in the HH)                0.016        (0.031)

                         medicine     expenditures (log)
                         medicine     expenditurest                     -0.361***       (0.121)
                         medicine     expenditurest+1                    -0.303**       (0.113)
                         medicine     expenditurest+2                      0.043        (0.128)

                         Each line shows the result of separate regressions
                         Controlling for household head and household characteristics
                         Standard errors clustered by gridcell [in brackets]
                          * p < 0.10, ** p < 0.05, *** p < 0.01




Aguilar & Vicarelli (Harvard, Yale)              ENSO and Mexican children                  November 29, 2012   47 / 63
Summary of findings (mechanisms)

       income contractions persistent over the three periods t, t + 1, t + 2
               decrease of total income from 40% (t) to 26% (t + 2)
               decrease of agricultural income from 27% (t) to 18% (t + 2)


       contractions in value of food consumption over three periods
               10% (t), 11% (t + 1), and 15% (t + 2)


       changes in diet composition, measured as log consumption (pesos):
               consumption of tortillas
                       increases immediately after the shock (13%)
                       decreases in period t + 2 (22%)
               decrease in consumption of animal proteins (14% to 17%)
               decrease in consumption of fruit and vegetables (14% to 20%)


Aguilar & Vicarelli (Harvard, Yale)    ENSO and Mexican children     November 29, 2012   48 / 63
Summary of findings (mechanisms)



       child health reported by mothers, does not seem to be significantly affected


       medicine expenditures significantly decrease
               36% in period (t) and 30% in (t + 1)


       probability of receiving formal and/or informal transfers, immediately after
       the shock:
               increases of government food aid (5 percentage points)
               decreases of transfers received from neighbors (3 perc. points)




Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children    November 29, 2012   49 / 63
Outline


1   Background

2   Data

3   Empirical specification

4   Results

5   Mechanisms

6   The role of Progresa

7   Conclusions


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   50 / 63
The Role of Progresa

       Progresa: poverty alleviation program in rural Mexico
               conditional cash transfer (CCT), conditional on children’s school
               attendance and periodic family health check-ups
               Pilot in 1997-2000 - clustered randomized experiment with treatment
               at the village level
               beneficiaries selected based on a poverty index at the household level
               beneficiary households receive nutritional supplements and cash
               transfers (based on number, age and gender of school age children)
               Monthly transfers represent about 20% of the monthly consumption of
               poor households


       We investigate the potential mitigating effects of Progresa


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children    November 29, 2012   51 / 63
Role of Progresa: Anthropometric indicators


                                           weight (lb)    height (in)        stunting   anemia      days sick
                                               (1)            (2)               (3)       (4)          (5)
    Rain shock                               -0.516        -0.467**          0.126***    0.0297       0.0847
                                            [0.4104]       [0.2298]          [0.0357]   [0.0254]     [0.1768]

    Treatment                                -0.181         -0.0598           0.0118    0.0510*      -0.0997
                                            [0.4066]        [0.2182]         [0.0303]   [0.0307]     [0.1689]

    Treatment x Rain shock                   -0.702          -0.255          0.00271    -0.0407       0.0485
                                            [0.5705]        [0.3153]         [0.0505]   [0.0374]     [0.2321]
    Observations                              259             259              259        258          259
    R2                                        0.06           0.06              0.09      0.01          0.01
    Mean                                     33.92           38.29            0.301      0.261        1.380

    Robust Standard errors [in brackets]
    * p < 0.10, ** p < 0.05, *** p < 0.01




Aguilar & Vicarelli (Harvard, Yale)              ENSO and Mexican children               November 29, 2012      52 / 63
Role of Progresa: Cognitive development indicators

                                             Peabody Test                Wodcoock-Mu˜oz Test
                                                                                      n
                                               language           working   short term  visual-spatial
                                                 skills           memory     memory        thinking
                                                  (1)               (2)        (3)            (4)

       Rain shock                               -0.159**          -0.137**    -0.100**        -0.139***
                                                [0.0762]          [0.0684]    [0.0406]         [0.0439]

       Treatment                                  0.0330          -0.00983    -0.0419          -0.0459
                                                 [0.0724]         [0.0650]    [0.0402]         [0.0452]

       Treatment x Rain shock                    -0.0197          -0.0463      0.0592           0.0466
                                                 [0.0976]         [0.0864]    [0.0556]         [0.0606]
       Observations                                 253             259          259              259
       R2                                          0.05             0.06        0.03             0.06
       Controlling for household and individual characteristics
       Standard errors clustered by gridcell [in brackets]
        * p < 0.10, ** p < 0.05, *** p < 0.01




Aguilar & Vicarelli (Harvard, Yale)               ENSO and Mexican children              November 29, 2012   53 / 63
The Role of Progresa: discussion



       Fernald and Gertler (2005) analyze the effects of Progresa on some of these
       outcomes
            compare the RCT localities with respect to a synthetic control
            find significant effects on anthropometric and motor skills, but not on
            cognitive abilities
            no difference between original treatment localities (begin to receive
            CCT in 1998) and control localities (added to the program in 2000)


       Argument: those living in control localities “catch-up” given that they begin
       to receive the benefits on 2000




Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   54 / 63
The Role of Progresa: RD analysis
                       Use RD to identify if there are medium term benefits of Progresa and assess
                       its possible mitigating effects
                            RD with respect to the poverty index used to select eligible households
                            index based on household’s characteristics and asset ownership

                                                         Progresa Beneficiaries
                                  Progresa Recipients 2001                                                  Progresa Recipients 2002
         1




                                                                                    1
         .8




                                                                                    .8
 (mean) recipient3




                                                                            (mean) recipient4
             .6




                                                                                        .6
   .4




                                                                              .4
         .2




                                                                                    .2
         0




                                                                                    0




                     -30    -20       -10           0    10         20                          -30   -20       -10           0    10      20
                                            x_pmt                                                                     x_pmt




Aguilar & Vicarelli (Harvard, Yale)                           ENSO and Mexican children                                November 29, 2012    55 / 63
The Role of Progresa: RD analysis


                                         Effects on anthropometric variables
                           Weight (lb) espacio espacio espacio espacioHeight (in)
                              Weight (lb)                                                                Height (in)




                                                                           44
 50




                                                                           42
 40




                                                                           40
                                                                           38
 30




                                                                           36
 20




                                                                           34
      -30    -20        -10              0              10         20           -30      -20       -10              0              10   20
                                 x_pmt                                                                      x_pmt

                    Rain_shock=0         Rain_shock=1                                          Rain_shock=0         Rain_shock=1




Aguilar & Vicarelli (Harvard, Yale)                          ENSO and Mexican children                        November 29, 2012          56 / 63
The Role of Progresa: RD analysis


                                            Effects on cognitive variables
                        Language espacio espacio espacio espacioWorking memory
                    Peabody Language Test                                            Long-term Memory (Woodcok-Johnson Test 1)




                                                                         4
 4




                                                                         3.5
 3.5




                                                                         3
 3




                                                                         2.5
 2.5




                                                                         2
 2




                                                                         1.5
 1.5




       -30   -20        -10            0              10         20            -30       -20       -10            0              10   20
                               x_pmt                                                                      x_pmt

                    Rain_shock=0       Rain_shock=1                                            Rain_shock=0       Rain_shock=1




Aguilar & Vicarelli (Harvard, Yale)                        ENSO and Mexican children                          November 29, 2012        57 / 63
Outline


1   Background

2   Data

3   Empirical specification

4   Results

5   Mechanisms

6   The role of Progresa

7   Conclusions


Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children   November 29, 2012   58 / 63
Conclusions

       We provide evidence that children affected by ENSO-related weather
       shocks during their early stages of development are affected on the
       medium-term on
               Cognitive abilities (language, working memory, and visual spatial
               integration)
               Anthropometric indicators (weight and height)


       The analysis shows that some of the mechanisms that could drive
       these results are
               Persistent negative effects on household income
               Persistent negative effects on food consumption
               Changes in diet composition


       The conditional cash transfer program shows no mitigating effects for
       households affected by the shocks that received the treatment
Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children    November 29, 2012   59 / 63
Conclusions: Perspectives and Policy Implications


       This study represents test-bed to understand climate change impacts
       (i.e. extreme events)
               direct and indirect role of weather factors on cognitive/physical
               development not well understood (i.e. temperature, stress)


       Adaptation studies should include human cognitive/physical
       development
               particularly relevant in rural areas of developing countries


       Socioeconomic development
               poverty reduction interventions should include vulnerability reduction
               component
               future of weather index insurance in rainfed-agriculture communities



Aguilar & Vicarelli (Harvard, Yale)   ENSO and Mexican children      November 29, 2012   60 / 63
Standard Errors: Anthropometric indicators - BACK
                                      weight (lb)    height (in)       stunting      anemia        days sick
                                          (1)            (2)              (3)          (4)            (5)

        coh97 x rain shock              0.6137          0.2190              .         0.0624        0.2652
                                        0.6565          0.2629                          0.6         0.2421
                                       (0.6192)         0.2881                        0.0571        0.2301
        coh98 x rain shock              0.4806          0.2176          0.0722        0.0336        0.1813
                                        0.5352          0.2475          0.0712        0.0394        0.1781
                                        0.6177          0.2974          0.0709        0.0393        0.1607
        coh99 x rain shock              0.4399          0.2483          0.0672        0.0368        0.1860
                                        0.4924          0.2826          0.0720        0.0364        0.2170
                                        0.5619          0.3272          0.0806        0.0343        0.1896
        coh00 x rain shock              0.3484          0.2485          0.0630        0.0338        0.2043
                                        0.3378          0.2514          0.0658        0.0368        0.2007
                                        0.3627          0.2852          0.0725         0.036        0.1745
        coh01 x rain shock              0.3742          0.2052          0.0653        0.0616        0.2517
                                        0.3991          0.1867           0.073        0.0716        0.2211
                                        0.3959          0.1946          0.0844        0.0751        0.1998

        Robust standard errors; Conley SEs, cutoff=1decimal deg; Conley SEs, cutoff=2 decimal deg.


Aguilar & Vicarelli (Harvard, Yale)          ENSO and Mexican children                    November 29, 2012    61 / 63
Standard Errors: Cognitive dev indicators (log) - BACK
                                      Peabody Test                 Woodcock-Mu˜oz Test
                                                                                n
                                                           long term  short term  visual-spatial
                                         language           memory     memory        thinking
                                            (1)               (2)        (3)            (4)

          coh97 x rain shock              0.0967             0.1042           0.0257             0.0424
                                          0.1055             0.1199           0.0288             0.0496
                                           0.12              0.1187           0.0287             0.0516
          coh98 x rain shock              0.0601             0.0644           0.0322             0.0335
                                          0.0679             0.0817           0.0363             0.0398
                                          0.0721             0.0907           0.0382              0.403
          coh99 x rain shock              0.0682             0.0598           0.0370             0.0493
                                          0.0651             0.0649           0.0357              0.058
                                          0.0612             0.0735           0.0345             0.0592
          coh00 x rain shock              0.0672             0.0568           0.0374             0.0541
                                          0.0576             0.0565           0.0356             0.0486
                                           0.046             0.0502           0.0381             0.0423
          coh01 x rain shock              0.6933             0.0549           0.0552             0.0899
                                          0.6910              0.66            0.0493             0.1003
                                          0.6822             0.0651           0.0388             0.0944
          Robust standard errors; Conley SEs, cutoff=1decimal deg; Conley SEs, cutoff=2 decimal deg.


Aguilar & Vicarelli (Harvard, Yale)           ENSO and Mexican children                    November 29, 2012   62 / 63
Standard Errors: Motor skills indicators- BACK
                                            balance          ability to               ability to
                                           (seconds)       walk backward             walk straight
                                              (1)               (2)                       (3)

                coh97 x rain shock           0.3420             0.0162                   0.0117
                                             0.3686             0.0186                   0.0109
                                             0.3064             0.0208                   0.0097
                coh98 x rain shock           0.2609             0.0130                   0.0118
                                             0.2628             0.0119                   0.0104
                                             0.2292             0.0118                   0.0081
                coh99 x rain shock           0.3408             0.0155                   0.0156
                                             0.3452             0.0152                   0.0134
                                             0.3557             0.0156                   0.0135
                coh00 x rain shock           0.3739             0.0283                   0.0374
                                             0.2811             0.0246                   0.0351
                                             0.2735             0.0236                   0.0353
                coh01 x rain shock           0.4352             0.0563                   0.0509
                                             0.3796              0502                    0.0488
                                             0.3306             0.0432                   0.0536
                Robust standard errors; Conley SEs, cutoff=1decimal deg; Conley SEs, cutoff=2 decimal deg.
                * p < 0.10, ** p < 0.05, *** p < 0.01


Aguilar & Vicarelli (Harvard, Yale)           ENSO and Mexican children                    November 29, 2012   63 / 63

11.29.2012 - Marta Vicarelli

  • 1.
    ENSO and Mexicanchildren Medium-term effects of early-life weather shocks on cognitive and health outcomes Arturo Aguilar Marta Vicarelli Harvard University Yale University November 29, 2012 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 1 / 63
  • 2.
    Motivation Conditions affecting individuals at early stages of life tend to have long-term effects Health, education, socioeconomic status (Maccini and Yang, 2009) Physical and mental disabilities (Almond, 2006; Almond and Mazumder, 2011) Weather shocks are the most important self-reported risk faced by rural households (Skoufias, 1997; Dercon and Krishnan, 2000; Gine, Townsend and Vickery, 2008) El Ni˜o Southern Oscillation (ENSO) n Recurring climatic event with a 5 to 7 year cycle Affects hydro-meteorological patterns causing extreme weather events (e.g. droughts, floods, heat waves) Global impacts (Cane et al., 2004) Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 2 / 63
  • 3.
    Research Questions 1 Estimate the effects of ENSO-related weather shocks in early-life on medium-term individual well-being (human capital formation): Cognitive development Health and physical development Motor skills 2 Investigate possible mechanisms through which weather shocks could be driving these results Income Nutrition Health 3 Assess the potential mitigating effects of a randomized poverty reduction intervention: Mexico’s Progresa Conditional Cash Transfer program Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 3 / 63
  • 4.
    Contributions and relatedliterature 1 Long-term effects of shocks in early-childhood Maccini and Yang (2009), Almond (2006), Almond and Mazumder (2011) Contribution: Examines specific medium-term effects on human-capital formation (e.g. memory, language development) which might be driving long-term effects 2 Role of weather shocks Maccini and Yang (2009), Munshi (2003), Baez and Santos (2007) Contribution: Use ENSO-related extreme rain shocks at the end of the agricultural season to identify exogenous income shocks 3 Progresa’s effects Fernald et al. (2008), Fernald and Gertler (2005), Gertler (2004) Contribution: Determine if the Conditional Cash Transfers provided mitigation effects to children affected by the shocks Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 4 / 63
  • 5.
    A glimpse atthe results Main Results Four to five years after the shock, exposed children show: Lower cognitive abilities (11 to 21 percent) Receptive language, working memory, and visual-spatial processing Lower weight (0.28 to 0.38 kg) and lower height (1.1 to 1.8 cm) Minor reduction in gross motor skills Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 5 / 63
  • 6.
    A glimpse atthe results Mechanisms The ENSO-related weather shock had contemporaneous and persistent effects Income: contraction up to 2 years after the shock Food consumption and diet composition: negatively affected Health: no significant self-reported effect immediately after the shock Role of Progresa No evidence of Progresa’s mitigating effects has been found Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 6 / 63
  • 7.
    Outline 1 Background 2 Data 3 Empirical specification 4 Results 5 Mechanisms 6 The role of Progresa 7 Conclusions Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 7 / 63
  • 8.
    El Ni˜o SouthernOscillation n ENSO is a non-regular cyclical climatic pattern associated to changes in tropical Pacific Ocean sea surface temperature and pressure. ENSO generates weather extremes across the globe, especially in countries bordering the Pacific Ocean. El Ni˜o 1997-1998 n La Ni˜a 1998-1999 n Sizeable effects in weather-sensitive industries (e.g. fishing and agriculture) (Cane et al., 2004) Large effects for developing countries that rely on rain-fed agriculture (90% of households in our sample) Use extreme floods during the harvest season as exogenous income shocks Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 8 / 63
  • 9.
    El Ni˜o SouthernOscillation n Figure: Satellite image showing sea surface heights relative to normal conditions. Red and white areas are related to above average sea surface temperatures and blue and purple areas to below average sea surface temperatures Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 9 / 63
  • 10.
    Outline 1 Background 2 Data 3 Empirical specification 4 Results 5 Mechanisms 6 The role of Progresa 7 Conclusions Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 10 / 63
  • 11.
    Data: Weather Gridded precipitation data Source: UEA CRU TS2p1 (Mitchell, 2005) Temporal resolution: monthly Spatial resolution: 0.5 x 0.5 degrees We calculate the Monthly Standardized Anomaly Anomaly = difference with respect to 1960-1999 average levels Standardized = measured in standard deviation terms Weather shock definition: rain shock = 1 if standardized anomaly for Sep-Oct > 0.7 Sensitivity tests using different thresholds Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 11 / 63
  • 12.
    Data: Weather Standardized anomaly is above 0.7 about 16% of the time Standardized anomaly distribution (Sept-Oct) Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 12 / 63
  • 13.
    Data: Weather Monthly Precipitation Standardized Anomalies 4 Growing Season A M J JJ A S O N 2 0 -2 97 98 99 Year Figure: Maize calendar: Planting season (Apr-Jun). Moisture sensitive season (Jul-Aug). Maturation and Harvesting (Sep-Nov) Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 13 / 63
  • 14.
    Data: Weather Precipitation Standardized Anomalies (UEA CRU Ts2p1) 1999 30˚N 25˚N Latitude 20˚N 15˚N 120˚W 115˚W 110˚W 105˚W 100˚W 95˚W 90˚W Longitude Oct 1999 -2.4 -2 -1.6 -1.2 -0.8 -0.4 0 0.4 0.8 1.2 1.6 2 2.4 precipitation Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 14 / 63
  • 15.
    Data: Weather We spatially joined Weather and Socioeconomic Data 24°0'0"N 30˚N 22°0'0"N 25˚N Latitude 20°0'0"N 20˚N 15˚N 18°0'0"N 120˚W 115˚W 110˚W 105˚W 100˚W 95˚W 90˚W Longitude Oct 1999 104°0'0"W 102°0'0"W 100°0'0"W 98°0'0"W 96°0'0"W -2.4 -2 -1.6 -1.2 -0.8 -0.4 0 0.4 0.8 1.2 1.6 2 2.4 precipitation Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 15 / 63
  • 16.
    Data: Weather 1999 Precipitation Standardized Anomalies (UEA CRU Ts2p1) September October ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (( !! ( ! ( ! (( !! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (( !! ( ! ( ! (( !! ( ! (( !! (( !! ( ! (( !! (( !! ( ( (((( ( ! ! !!!! ! ( (( ( ! !! ! ( ( (((( ( ! ! !!!! ! ( ! (( ( !! ! ( ! (( ( !! ! ( ! ( ! ( ! ( (( ! !! (( ( !! ! ( ! ( ! ( ! ( (( ! !! ( ! ( ! ( ( (( ! ! !! (( !! ( !( ! ( ! ( ( (( ! ! !! (( !! ( ( ! ! ( ( (( ! ! !! ( ! ( ( ! ! ( ( (( ! ! !! ( ! ( ! ( ! ( !( ! ((( ( !!! ! ( ! ( ! ( ! ( ! ((( ( !!! ! ( ! ( !( ( ! ! ( ! ( ! ( !( ! ( ! ( ! ( ! ( ( ! ! ( ! ( ( ! ! ( ( ! ! ( ( ! ! ( ! ( ( (( ! ! !! ( ! ( ! ( ( (( ! ! !! ( ! ( ( ! !( ! ( ! ( ( ! !( ! ( ! ( (( ( ! !! ! ( ! ( ( ( ( ( ( (( ( ! ! ! ! ! ! !! ! ( (( ( ( ! !! ! ! ( (( ( ! !! ! ( ! ( ( ( ( ( ( (( ( ! ! ! ! ! ! !! ! ( (( ( ( ! !! ! ! ( ! ( ! ( ! ( ! ( ! ( ! (( ( !! ! ( ! ( (( ! !! ( ! ( (( ( ! !! ! (( !!( ! ( ! ( (( ! !! ( ! ( (( ( ! !! ! (( !! (( !! (( ( !! ! ( ( ( ( ( ! ! ! ! ! (( ( !! ! ( ( ( ( ( ! ! ! ! ! (( !! (( !! (( ( ( (((( (( !! ! ! !!!! !! ( ( ( ! ! ! (( !! (( !! (( ( ( (((( (( !! ! ! !!!! !! ( ( ( ! ! ! ( ! ( ! (( !! ( ( ((( ! ! !!! ( ((( ! !!! (( !! (( !! ( ! (( !! ( ( ((( ! ! !!! ( ((( ! !!! (( !! (( !! ( ! ((( !!! ( ( (( ! ! !! ( ! (( ( (((( ( !! ! !!!! ! ( ( ! ! ( ! ( ! ((( !!! ( ! ( ( (( ! ! !! ( ! (( ( (((( ( !! ! !!!! ! ( ( ! ! ( ! ( ((( ! !!! ( ( ( ( ! ! ! ! ( ( (( ( ! ! !! ! ( ! ( ((( ! !!! ( ( ( ( ! ! ! ! ( ( (( ( ! ! !! ! ( ! ( ! ( (( ! !! ( ( ( ((( ! ! ! !!! ( ! ( (( ! !! ( ( ! ! ( ! ( (( ! !! ( ( ( ((( ! ! ! !!! ( ! ( (( ! !! ( ( ! ! ( ! ( ( ( ! ! ! ((( ( ( (( ( ( !!! ! ! !! ! ! ( ! ( ! ( ( ( ! ! ! ((( ( ( (( ( ( !!! ! ! !! ! ! ( ! (( ( !! ! ( ( ( (( ! ! ! !! ( ! (( ( !! ! ( ( ( (( ! ! ! !! ( ! ( ! ( ( ! ! ( ( ! ! ( (( ( ( ! !! ! ! ( ! ( ( ! ! ( ( ! ! ( (( ( ( ! !! ! ! ( !( ! ( ! (((( ( !!!! ! ( ! ( ! ( !( ! ( !( ! ( ! (((( ( !!!! ! ( ! ( ! ( !( ! ( ! ( (( ! !! ( ! ((( !!! ( ! ( (( ! !! ( ! ((( !!! ( ! ( (( ! !! ( ! ( ! (( ( ( !! ! ! ( ! ( ! ( (( ! !! ( ! ( ! (( ( ( !! ! ! ( ! ( ! ( ! ( ( (( (( ( ! ! !! !! ! (( !! ( ! ( ! ( ( (( (( ( ! ! !! !! ! (( !! ( ( (( ! ! !! ( ( ! ! ( !( ! ( (( ! !! ( ! ( ( ! ! ( ( (( ! ! !! ( ( ! ! ( ! ( (( ! !! ( ! ( ( ! ! ( ! ( ! ( ( ( (( ! ! ! !! ( ! ((( ( !!! ! (( ( !! ! ( ! ( ! ( ! ( ( ( (( ! ! ! !! ( ! ((( ( !!! ! (( ( !! ! ( ! ( ! (( !! (( !! ( ! ( ! (( !! (( !! ( ! ( ! ( ( ! ! ( ! ( ! ( ( ( ! ! ! ( ! ( ! ( ( ! ! ( ! ( ! ( ( ( ! ! ! ( ! ( ! ( ( ( ! ! ! ( ! ( ! ( (( ! !! ( ( ( ! ! ! ( ! ( ! ( (( ! !! ( !( ! ( ( ! ! ( !( ! ( ( ! ! ( ( ( ! ! ! (( !! ( ! ( ! ( ( ( ! ! ! (( !! ( ! ( ! (( !! ( ( ! ! (( ( !! ! ( ! ( ! ( ! (( !! ( ( ! ! (( ( !! ! ( ! ( ! ( ! ( !( ! ( !( ! ( ( (( ! ! !! (( !! ( ! ( ( ! ! (( ( ( !! ! ! ( ! ( ! ( ( (( ! ! !! (( !! ( ! ( ( ! ! (( ( ( !! ! ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ( (( ! ! !! ( ! ( ! ( ! ( ! ( ! ( ( (( ! ! !! ( ! ( ( ! ! ( ! ( ( ! ! ( ! ( ! ( ( ! ! ( ! ( ( ! ! ( ! ( ( ! ! ( !( ! ( ( ( ! ! ! ( ( ! ! ( !( ! ( ( ( ! ! ! ( !( ! ( ! ( ! ( ( ! ! ( ! ( !( ! ( ! ( ! ( ( ! ! ( ! ( !( ! ( ! ( ! ( !( ! ( !( ! ( ! ( ! ( !( ! ( ! ( ! ( ! (( !! ( ! ( !( ! ( ! ( ! (( !! ( ! ( !( ! ( ! ( ( ( ! ! ! ( !( ! ( ( ( ! ! ! ( !( ! ( ! ( ! (( !! ( ! ( ! (( !! ( ! ( ! ( ( ! ! ( ! ( ! ( ! ( ( ! ! ( ! (( !! ( ! ( ((( ! !!! (( !! (( !! ( ((( ! !!! (( !! ( ! ( (( ! !! ( ( ( ! ! ! ( ! ( ! ( (( ! !! ( ( ( ! ! ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( !( ( ( ! ! ! ( ! ( !( ( ( ! ! ! (( ( ( !! ! ! (( !! ( ! ( ! (( ( ( !! ! ! (( !! ( ! ( ! ( ! ( ! ( ( ! ! (( !! ( ! ( ( ! ! (( !! ( ! (( !! (( !! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! .5 .5 5 2 1 -1 2 4 3 0. -0 -1 <-   Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 16 / 63
  • 17.
    Data: Weather September-October Precipitation Standardized Anomalies (UEA CRU Ts2p1) La Nina Year 1999 100°0'0"W 95°0'0"W ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( Ü ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (( !! ( ! ( ! ( ! ( ! !! (( ! ( ! ( ( ! ! ( ! ( ( ! ! (! ( ( ! ( ! ( ! (( !! ( ! (( !! ! ( ( ( (((( ( ! ! !!!! ! ( ! ( ( ( (( ! ! ! !! ! ( ( ! (( ( !! ! ( ! ( ! ( ! ( (( ! !! ! ( !! (( !! ( ! ( ! ( ( (( ! ! !! (( !! ! ( (( ( ( ! ! ( ( (( ! ! !! ( ( (((( ( ! ! !! ! ! ! ( ! ! !!!! ! ! ( ( ( ((( ( !!! ! ( ! ( ( !( (! !! ! ( ( ! ( !( Gulf of Mexico ! ! ( ( ! ( ( !( ( ( ! ! ( ! ( ! ( !! (( ! ( ! !! ( (! ! !! ( ! ( (( ! ( ! ( ( ! ( !( ! ( ! ( ! ( !( ! ( ! ( ( ! ! ! ( ( (( ! ( ( ! ( ( ! ! ( ( (( ! ! !! ( ! ! !! ! ( (( ( ! !! ( (( ! ( ( ( ! !( ! ( ! ! ( ! ( (( ( ! !! ! ( ! ( ! ! ! ! !! ( ( ( ( (( ( ( ( ( ( ( (( ( ! ! ! ! ! ! !! ! ( (( ( ( ! !! ! ! ! ( ! ! ! (( !! ( ( !! !!( (( !! ( ! ( !( ! ( ! ( (( ! !! ( ! ( ! ( (( ( ! !! ! !( ! (( (( ! ! ! ! ! ! !! ! ( !( ( ( ( ( ( ( (( ( (( ( !! ! (( !! ( ( ( ( ( ! ! ! ! ! ! ! ! ! !! ( ( ( ( (( ! ! ( ( ! ( (( !! (( !! (( ( ( (((( (( !! ! ! !!!! !! ( ( ( ! ! ! ( ! !! ! (( (! ( ! !! ( (( !! ! (( ( ! ! !( ( ( ( ! ( ! (( !! ( ( ((( ! ! !!! ( (( ! !! ( (( ! !! (( !! !! ! (( ( ( !! !( ( ! ((( !!! ( ( (( ! ! !! (( ( (((( ( !! ! !!!! ! ( ! !( ! ! !( ! ! (( ! (( (( !! ( ! ! (! (! ! ! !!( !!! (! ( ! ( ( ( (( !!!!!( ( (! ( !( ( ( ( ! ! ! ( ! ( ( (( ( ! ! !! ! ( ! ! ( !! ! ! ! ! ( (( ( ( ( ! ( ! (( (( ( (! ( ( !! !( (! ! !( ( (! ! !! ! ! ! (! ( !( ( !( ( ( ! ( ( ! ( ( ( ( ( ( (( ! ! ! ! ! ! !! (( !! ( ( ( ((( ! ! ! !!! ( (( ! !! !! (( ( ( ! ! ( ( ! ( ( ! ! ( ! ! !! ( (( ( !! ! !! ! (! (( ! ( ( ( ( ( ! ! (( ! ! ( (( ( !! ! ((( ( ( ( ( ( ( !!! ! ! ! ! ! ! ( ( ( (( ! ! ! !! ! ( ( (( ( ! ! ! !!! ! !!! (! ( ((( ( ((( ( ! ! !! ( (( ( ! ( ( ! ! ( ( ! ! ( ! ( (( ( ( ! !! ! ! ( (((( ( !!!! ! ( ! ( ! !! ! (( ( ! ! ! ! ( ( ( ( ( ( (( ! (((! ! ! !! ( !!! ! ! ! !! ( ( ( ( (( ( ! ( ! ( !( ! ( (( ! !! ( ! ( ! ( ! ((( !!! ( ! ! ( ! ! ( ( ! ! !! ( ( (( ( ! ( (( ! !! ( ! (( ( ( !! ! ! ( ! ! ( ! ( ! ! ( ( ( ( (( ( ! ! !! ! (( !! ! ! !! ! ( ( (( ( ! ! ! ! ( ( ( ( ! ( !! ((! ( ( ( (( ! ! !! ( ( (( ( ! ! !! ! ( (( ! !! !!! ( ! ((( ( ( ! ! ( ! ( ! ( ( ! ! ((( ( !!! ! 20°0'0"N ! ! ( ( ! ! ( ( ! ( !! ! ! (( ( ( ( ! ( ! ( ( ( (( ! ! ! !! ( ! (( ( !! ! ( ! ! ! !! ! !! ! ! !! ( ( ((! ( (( ( ( (( ( ! (( !! ( ( ! ! (( !! ( ! ! ! (! (( ( ! !!!! ( (((( ! ( ! ! ( ( ! ! ( ( ! ( ! ( ( ( ! ! !( ! ! ! (! ( ( ! ! ( (( !( ! ( ! ! ! !! ( ( ( (( !! ((! ( !!! ! (!( ( ! ! ( ( ( ( ( ( ! ! ! ( ! ( ! ( ! ( (( ! !! !( ( ! ( ( ! ! !! ((! ! ( ( ! ( ! !! ( (( ( ( ( ! ! (( !! ( ! ( ! !! !! (( (( ! ( ! ! ( ( ! ( !! (( ! ( ! ( (( !! ( ( ! ! ( ! (( ( ( !! ! ! ( ! ( ! ( ! ! ( ! ( ( ( (( ! ! !! (( !! ( ! ( ( ! ! ( ! !!! ((( ! (( ( ( !! ! ! Mexico City ! ( !! ((! ( ( ( ! ( ! ( !( ! ( ! ( ( (( ! ! !! !! (( ! ! ( !(! ! (!( ( ! ( ! (! ( ! ( ! ( ! ( ( ! ! ( ! ( ( ! ! ( ! ! !( ! ( ( !( ( !! (( !( (( !! !! ! ! ! (( ( ( ( ( ( ! ! ( !( ! ( ( ( ! ! ! ! ! !! ( ( (( ( ( ! ! ( ( !( ! ( ! ! ( ! ( ! ! ( ( ! ( ( ! ( ! ( !( ! ! ( ! ! ( ( ! ( ! ! ( ( ! ( ( !( ! ( ! ( ! ( ! ! ( ( ( (! ! ! ( !!! ! ( ! ( ! ! ! ! ( ( ( ! ( ! ( ! ( (( ( (( !! ( !( ! ( !( ! ( ( ( ! ! ! ( ! ! ! ( ( ! ( ! ( !! (( ( ! ( ! (( !! ! ( ! ( ! ( ( ! ( ! ( ( ! ! ( ! !! (( ! (! ( ! ( ! ( (( !! ( ! ( ((( ! !!! (( !! ! ! !! ! ( ( (( ( ! ( ! ! ! ( ( ! ( (( ! !! ( ( ( ! ! ! ( ( ! ( !! ( ! ( ! !!! ( ((( !! (( ! ( ( ! (! ( ( ! ! ( ! !! ( (( ! ( ( ! ( ! ( ! ( ! ( ! ( ! ! ( ! ( ! ( ( ! ( !( ( ( ! ! ! ! ( ! ( ! ( (( ( ( !! ! ! (( !! ( ! ( ! ! !( ! !( ( ( ( ! !! ! !! ! (( ( (( ( ! (! ! ( ( ( ! ! (( !! ( ! ( (( !! ! ( Pacific Ocean ! ! !! ( ( (( ! ( ( ! !! (( ( ! ( ! ! ! ( ( ( ! ! ( ! ( 100°0'0"W 95°0'0"W ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( Ü ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (( !! ( ! ( ! ( ! ( ! !! (( ! ( ! ( ( ! ! ( ! ( ( ! ! (! ( ( ! ( ! ( ! (( !! ( ! (( !! ! ( ( ( (((( ( ! ! !!!! ! ( ! ( ( ( (( ! ! ! !! ! ( ( ! (( ( !! ! ( ! ( ! ( ! ( (( ! !! ! ( !! (( !! ( ! ( ! ( ( (( ! ! !! (( !! ! ( (( ( ( ! ! ( ( (( ! ! !! ( ( (((( ( ! ! !! ! ! ! ( ! ! !!!! ! ! ( ( ( ((( ( !!! ! ( ! ( ( !( (! !! ! ( ( ! ( !( Gulf of Mexico ! ! ( ( ! ( ( !( ( ( ! ! ( ! ( ! ( !! (( ! ( ! !! ( (! ! !! ( ! ( (( ! ( ! ( ( ! ( !( ! ( ! ( ! ( !( ! ( ! ( ( ! ! ! ( ( (( ! ( ( ! ( ( ! ! ( ( (( ! ! !! ( ! ! !! ! ( (( ( ! !! ( (( ! ( ( ( ! !( ! ( ! ! ( ! ( (( ( ! !! ! ( ! ( ! ! ! ! !! ( ( ( ( (( ( ( ( ( ( ( (( ( ! ! ! ! ! ! !! ! ( (( ( ( ! !! ! ! ! ( ! ! ! (( !! ( ( !! !!( (( !! ( ! ( !( ! ( ! ( ( ! ! ( ! ( (( ( ! !! ! (( !! !( ! (( (( ! ! ! ! ! ! !! ! ( !( ( ( ( ( ( ( (( ( (( ( !! ! (( !! ( ( ( ( ( ! ! ! ! ! ! ! ! ! !! ( ( ( ( (( ! ! ( ( ! ( (( !! (( !! (( ( ( ( ((((( ( !! ! ! ! !!!!! !( ( ( ! ! ! ( ! !! ! (( (! ( ! !! ( (( !! ! (( ( ! ! !( ( ( ( ! ( ! (( !! ( ((( ! !!! ( ((( ! !!! (( !! (( ( (((( ( !! ! !!!! ! ( ! !! ! (( ( ( !! (( ( ! ((( !!! ( ( (( ! ! !! ( ( ! ! !( ! ! !( ! ! !( ( (( !! ( ! ! (! (! ! ! !!( !!! !! ( ! ( ( ( (( !!!!(( (! ! ! (! ( (( ( ( ( ! ! ! ( ! ( ( (( ( ! ! !! ! ( ! ! ( !! ! ! ! ! ( (( ( ( ( ! ( ! (! (( (( ( (! ( ( !! (( ( !( !! (! ! !! ! ! ! (! ( !( ( !( ( ( ( ! ( ( ( ( ( ( (( ! ! ! ! ! ! !! (( !! ( ( ( ((( ! ! ! !!! ( ( ! ! !! (( ( ( ! ! ( ( ! ( ( ( ! ! ! ((( ( ( (( ( ( !!! ! ! !! ! ! ! !! ( (( ( !! ! !! ! (! (( ! ( ( ( ( ( ! ! (( ! ! ( (( ( !! ! ( ! ( ( ( (( ! ! ! !! ! ( ( (( ( ! ! ! !!! ! !!! (! ( ((( ( ((( ( ! ! !! ( (( ( ! ( ( ! ! ( ( ! ! ( ! ( (( ( ( ! !! ! ! ( (((( ( !!!! ! ( ! ( ! !! ! (( ( ! ! ! ! ( ( ( ( ( ( (( ! (((! ! ! !! ( !!! ! ! ! !! ( ( ( ( (( ( ! ( ! ( !( ! ( (( ! !! ( ! ( ! ( ! ((( !!! ! ! ( ( ! ! ( ( ! ! !! ( ( (( ( ! ( (( ! !! ( ! (( ( ( !! ! ! ( ! ! ( ! ( ! ! ( ( ( ( (( ( ! ! !! ! (( !! ! ! !! ! ( ( (( ( ! ! ! ! ( ( ( ( ! ( !! ((! ( ( ( (( ! ! !! ( ( (( ( ! ! !! ! ( (( ! !! !!! ( ! ((( ( ( ! ! ( ! ( ! ( ( ! ! ((( ( !!! ! 20°0'0"N ! ! ( ( ! ! ( ( ! ( !! ! ! (( ( ( ( ! ( ! ( ( ( (( ! ! ! !! ( ! (( ( !! ! ! ! !! ! !! ! ! !! ( ( ((! ( (( ( ( (( ( ! (( !! ( ( ! ! (( !! (( !! ! ! (! (( ( ! !!!! ( (((( ! ( ! ! ( ( ! ! ( ( ! ( ! ( ( ( ! ! !( ! ! ! (! ( ( ! (( !( ! ( ! ! ! !! ( ( ( (( ! ( !!! ! ((( ( ! ! ( ( ( ( ( ! ! ! ( ! ( ! ( (( ! !! ! ( !! (( ! !! (( !! (( ( !( ! ( ( ! ! ! ! ( ( ! ! ( ( ( ! !! ( ((! ( ! ( (( !! ( ( ! ! ( ( ! ! ( ! (( ( ( !! ! ! (( !! ( ! ( ! ( ! !! ! (( ( !! (( ! ( ! ( !! (( ! ( ( ! ( !( ! ( ( (( ! ! !! (( !! ( ( ! ! ( ! !!! ((( ! (( ( ( !! ! ! Mexico City ! ( !! ((! ( ( ( ! ( ! ( !( ! ( ! ( ( (( ! ! !! !! (( ! ! (!( !(! ! (!( ( ! ( ! (! ( ! ( ! ( ! ( ( ! ! ( ! ( ( ! ! ( ! ! ( !! (( !! !( ( !( ! !! (( !! ! ! ! (( ( ( ( ( (( ( ( ! ! ( ( ( ! ! ! ! ! !! ( ( (( ( ( ! ! ( ( !( ! ( ! ! ( ! ! ( ( ( ! ( ! ! ! ( ( ! ( ! ! ( ( ! ( ! ! ( ( ! ( ! ( ( ( ( !( ! ( ! ( ! ( !( ! ( ! (! ! ! ( !!! ! ( ! ( ! ! ! ! ( ( ( ! ( ! ( ! ( (( ( (( !! ( !( ! ( !( ! ( ( ( ! ! ! ( ! ! ! ( ( ! ( ! ( !! (( ( ! ( ! (( !! ! ( ! ( ! ( ( ! ( ! ( ( ! ! ( ! !! (( ! (! ( ! ( ! ( (( !! ( ! ( ((( ! !!! (( !! ! ! !! ! ( ( (( ( ! ( ! ! ! ( ( ! ( (( ! !! ( ( ( ! ! ! ( ( ! ( !! ( ! ( ! !!! ( ((( !! (( ! ( ( ! (! ( ( ! ! ( ! !! ( (( ! ( ( ! ( ! ( ! ( ! ( ! ( ! ! ( ! ( ! ( ( ! ( !( ( ( ! ! ! ! ( ! ( ! ( (( ( ( !! ! ! (( !! ( ! ( ! ! !( ! !( ( ( ( ! !! ! !! ! (( ( (( ( ! (! ! ( ( ( ! ! (( !! ( ! ( (( !! ! ( Pacific Ocean ! ! !! ( ( (( ! ( ( ! !! (( ( ! ( ! ! ! ( ( ( ! ! ( ! ( .5 .5 5 2 1 -1 2 4 3 0. -0 -1 <-   Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 17 / 63
  • 18.
    Data: Weather Average La Nina Precipitation Standardized Anomalies (UEA CRU Ts2p1) September October 100°0'0"W 95°0'0"W 100°0'0"W 95°0'0"W ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( Ü ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( Ü !! (( ! ! ( ( !! (( ! ! ( ( ! ( ! ( ! ( ! ( ! (! ( ! (! ( ! ( ! ( ! ( ! ( ! ( ! ( !! (( !! (( ! ( ! ( !! (( !! (( ( ( (((( ( ! ! !! ! ! ! ( ! ! !!!! ! ! ( ( ( ( ( (((( ( ! ! !! ! ! ! ( ! ! !!!! ! ! ( ( ( ! ( ( ( !( (! !! ( !( ! ( ( ( !( (! !! Gulf of Mexico ( !( Gulf of Mexico ! ! ( ( ! ( ( !( ( ! ! ( ( ! ( ( !( ( ! ( ! ( ! ( !! (( ! ( ! !! ( (! ! !! ( ! ( (( ! ( ! ( ! ( ! ( ! ( !! (( ! ( ! !! ( (! ! !! ( ! ( (( ! ( ! ( ! ( ( (( ! ( ! ( ( (( ! ( ! !! ! ( (( ( ! ( ! !! ( (( ! ( ! !! ! ( (( ( ! ( ! !! ( (( ! ( ! ( ! ! ! ! !! ( ( ( ( (( ! ( ! ! ! ! !! ( ( ( ( (( ! ( ! ! ! (( !! ( ( !! !!( ! ( ( !! ( ( !! !! ! ! ! ( ( !( ! (( (( ! ! ! ! ! ! !! ! ( !( ( ( ( ( ( ( (( ( !( ! (( (( ! ! ! ! ! ! !! ! ( !( ( ( ( ( ( ( (( ( ! ! ! ! !! ( ( ( ( (( ! ! ( ( ! ( ! ! ! ! !! ( ( ( ( (( ! ! ( ( ! ( !! ! (( (! ( ! !! ( (( !! ! (( ( ! ! !( ( ( !! ! (( (! ( ! !! ( (( !! ! (( ( ! ! !( ( ( !! ! (( ( !( ( !! !( ! ! !( ! ! (( ! (( !! ! (( ( !( ( !! !( ! ! !( ! ! (( ! (( ! ( ! (! ! ! !!( !!! !! ( ! ( ( ( (( !!!!(( ! (! ( (( ! ( ! (! ! ! !!( !!! !! ( ( ( ( (( !!!!(( ! (! ( (( ! ( !! ! ! ! ! ( (( ( ( ( ! ( ! (! (( (( ( (! ( ( !! !( ( !( !! ( (! ! !! ! ! ! (! ( !( ( !( ( ( ! ( !! ! ! ! ! ( (( ( ( ( ! ! ( ! (( (( ( (! ( ( !! !( ( !( !! ( (! ! !! ! ! ! ( ! (! ( !( ( !( ( ( !! (( ( ( ! ! ( !! (( ( ( ! ! ( ( !! ( ! (! ( ( !( ! ( (( ! ( ( ( ( ( ! ! (( ! ! ( ( !! ( ! (! ( ( !( ! ( (( ! ( ( ( ( ( ! ! (( ! ! ( ! ( ( !! ! ! ! ! !!! ! !!! (! ( ((( ( ((( ! ! ( ( ! !! ( (( ! ( ( !! ! ! ! ! !!! ! !!! (! ( ((( ( ((( ! ! ( ( ! !! ( (( ( ! ! ! ! ( ( ( ( ( ! ! ! ! ( ( ( ( !! ! (( ( ! ! !! ! !!! ( ( (( ( (((! ! ! ! !! ( ( ( ( (( !! ! (( ( ! ! !! ! !!! ( ( (( ( (((! ! ! ! !! ( ( ( ( (( ! ( ! ! ( ( ! (! ! ( ( ! ! !! ( ( (( ! ! ( ( ! ( ! ! ( ( ! (! ! ( ( ! ! !! ( ( (( ! ! ( ( ! ! !! ! ( ( (( ( ! ! ! ! ( ( ( ( ! ( !! ((! ( ! ! !! ! ( ( (( ( ! ! ! ! ( ( ( ( ! ( !! ((! ( !!! ((( !!! ((( 20°0'0"N 20°0'0"N ! ! ( ( ! ! ( ( ! ( !! ! ! (( ( ( ! ! ( ( ! ! ( ( ! ( !! ! ! (( ( ( ! ! !! ! !! ! ! !! ( ( ((! ( (( ( ( (( !!!! ( (((( ! ! !! ! !! ! ! !! ( ( ((! ( (( ( ( (( !!!! ( (((( ! ! (! (( ( ! ! ( ! ! ( ( ! ! ( ! ! (! (( ( ! ! ( ! ! ( ( ! ! ( ! ( ! ! (! (( !( ! ( ( ! ! ! !! ( ( ( (( !! ((! ( !!! ! (!( ( ! ! ( ( ( ! ( ! ! (! (( !( ! ( ( ! ! ! !! ( ( ( (( !! ((! ( !!! ! (!( ( ! ! ( ( ( !! (( !( ( !! (( !( ( ! ! ( ( ! ! ! ( ( ! !! ( ! (( ( ! ( ! ! ( ( ! ! ! ( ( ! !! ( ! (( ( ! ( !! ! (( ( !! (( ( !! (( ! ( !! ! (( ( !! (( ( !! (( ! ( ! ( ! ( ! ( ! ( !!! ( ((( ! !!! ( ((( ! Mexico City ( Mexico City !( ( !! ((! ( !( ( !! ((! ( ( !! (( ! ! ( !(! ! !! ( ( ! (! !! (( ! ! ( !(! ! !! ( ( ! (! ! !( ! ( ( !( ( !! (( !( (( !! !! ! ! ! (( ( ( ( ! !( ! ( ( !( ( !! (( (( !! !( !! ! ! ! (( ( ( ( ! ( ! ! ( ( ! ! !! ( ( (( ( ! ( ! ! ( ( ! ! !! ( ( (( ( ! ! ( ( ! ( ! ! ( ( ! ( ! ! ( ( ! ( ! ( ( ( ! ! ( ( ! ( ! ! ( ( ! ( ! ! ( ( ! ( ! ( ( ( (! (! ! ! ! ( ( ( ! ( ! ( ! ( ! ! ( !!! ! (( (! ! ! ! ( ( ( ! ( ! ( ! ( ! ! ( !!! ! (( (! ! ! ( ( ! ( ! ( ( !! (( ! ! ( ( ! ( ! ( ( !! (( ! ( !! (( ! ( ! (! ( ! ( ! ( ! ( !! (( ! ( ! (! ( ! ( ! ( ! ! !! ! ( ( (( ( ! ( ! ! ! ( ! ! !! ! ( ( (( ( ! ( ! ! ! ( ( ( ( ( ! ( !! ( ! ( ! !!! ( ((( !! (( ! ( ! ( ! ( ! ( ! !!! ( ((( !! (( ! ( ( ! (! ( ( ! ! ( ! !! ( (( ! ( ! ( ! (! ( ( ! ! ( ! !! ( (( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! !( ! !( ! !( ( ( ! !( ( ( !! ! !! ! (( ( (( ( ! (! ! ( !! ! !! ! (( ( (( ( ! (! ! ( ( ( ! ( ! ( Pacific Ocean Pacific Ocean ! ! !! ( ( (( ! ( ! ! !! ( ( (( ! ( !! (( !! (( ! ! ( ( ! ! ( ( ! ( ! ( ! ( ! ( .5 .5 5 2 1 -1 2 4 3 0. -0 -1 <-   Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 18 / 63
  • 19.
    ENSO historical precipitationpatterns No evidence that the same regions are affected at every ENSO occurrence by extreme rain shocks Figure: Standardized precipitation anomalies of September 1998 with respect to standardized precipitation anomalies of past ENSO occurrences Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 19 / 63
  • 20.
    ENSO historical precipitationpatterns 30˚N 30˚N 25˚N 25˚N Latitude Latitude 20˚N 20˚N 15˚N 15˚N 120˚W 115˚W 110˚W 105˚W 100˚W 95˚W 90˚W 120˚W 115˚W 110˚W 105˚W 100˚W 95˚W 90˚W Longitude Longitude Sep 1974 Oct 1976 30˚N 30˚N 25˚N 25˚N Latitude Latitude 20˚N 20˚N 15˚N 15˚N 120˚W 115˚W 110˚W 105˚W 100˚W 95˚W 90˚W 120˚W 115˚W 110˚W 105˚W 100˚W 95˚W 90˚W Longitude Longitude Oct 1981 Sep 1984 -2.4 -2 -1.6 -1.2 -0.8 -0.4 0 0.4 0.8 1.2 1.6 2 2.4 precipitation Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 20 / 63
  • 21.
    Data: Progresa SocioeconomicSurvey longitudinal dataset: Progresa’s evaluation survey Baseline 1997 Follow-up surveys 1998-2003, and 2007 Socioeconomic indicators, Health, Migration, Transfers... 506 rural villages in central Mexico in 7 states: Guerrero, Hidalgo, Michoacan, Puebla, Queretero, San Luis Potosi, and Veracruz More than 90% of households depend on rainfed agriculture Main outcomes in this study collected in 2003 259 villages, 5,000 households, 6,300 children Anthropometric and cognitive development Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 21 / 63
  • 22.
    Data: village locations 24°0'0"N 22°0'0"N 20°0'0"N 18°0'0"N Aguilar& Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 22 / 63
  • 23.
    Data: Main outcomes Data collected from children aged 2-6 Obtained by certified nurses Measures of interest: 1 Objective anthropometric measures: height and weight 2 Health indicators: hemoglobin level (anemia) and self-reported sick days 3 Language and cognitive development 4 Gross motor skills: McCarthy Scale of Children’s Abilities Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 23 / 63
  • 24.
    Data: Cognitive DevelopmentIndicators TEST Predicts Negative Factors Critical Years Peabody Picture/Vocabulary reading comprehension stress, nutrition 0-2 Receptive Language learning abilities family environment Woodcock-Munoz 1 future vocabulary Working memory second language stress, nutrition 0-2 associative memory arithmetic Woodcock-Munoz 2 severe Short-term memory cognitive disabilities genetic - Woodcock-Munoz 3 problem solving skills Visual spatial thinking abstract thinking stress, nutrition 0-2 secondary edu outcomes Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 24 / 63
  • 25.
    Descriptive Statistics: DependentVariables Variables Num obs Mean Std Dev Min Max Anthropometric Indicators weight (lb) 6233 33.33 6.6580 16.31 122.14 height (in) 6209 37.93 3.5430 16.81 56.54 stunt (binary) 4684 0.38 0.4842 0 1 anemia (binary) 6215 0.27 0.4415 0 1 number of sick days 5598 1.39 2.7874 0 30 Cognitive Dev. Tests (logs) language (Peabody) 4671 2.25 0.8946 0 4.37 W memory (Woodcock 1) 6010 2.17 0.8818 0 4.17 ST memory (Woodcock 2) 5747 2.95 0.6293 0 4.01 visual-spatial (Woodcock 3) 4988 2.30 0.5959 0 3.74 Motor Skills Tests balance (seconds) 5943 8.29 5.0580 0 45 walking backward (binary) 6088 0.89 0.3180 0 1 walking straight (binary) 6041 0.83 0.3735 0 1 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 25 / 63
  • 26.
    Descriptive Statistics: ExplanatoryVariables Variables Num obs Mean Std Dev Min Max Weather variables rain shock 8173 0.61 0.49 0 1 Socio-economic characteristics HH poverty index 1997 5254 703.06 134.67 237 1239 HH size in 1997 5268 6.08 2.56 1 24 age (months) 8173 50.26 16.44 19 82 gender (=1 if male) 8173 0.51 0.50 0 1 language of HH head * spanish & indigenous 5281 0.4 0.49 0 1 * only indigenous 5281 0.04 0.18 0 1 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 26 / 63
  • 27.
    Descriptive Statistics: ExplanatoryVariables “coh” stands for “cohort” and indicates children born in a given year Variables Num obs Mean Std Dev Min Max coh97 8173 0.17 0.3793 0 1 coh98 8173 0.21 0.4099 0 1 coh99 8173 0.22 0.4128 0 1 coh00 8173 0.21 0.4085 0 1 coh01 8173 0.18 0.3863 0 1 Interactions with rainfall shocks (binary) coh97*rain shock 8173 0.11 0.3110 0 1 coh98*rain shock 8173 0.13 0.3351 0 1 coh99*rain shock 8173 0.13 0.3388 0 1 coh00*rain shock 8173 0.13 0.3341 0 1 coh01*rain shock 8173 0.11 0.3186 0 1 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 27 / 63
  • 28.
    Outline 1 Background 2 Data 3 Empirical specification 4 Results 5 Mechanisms 6 The role of Progresa 7 Conclusions Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 28 / 63
  • 29.
    Empirical Specification Assumption: Weather shocks exogeneity (TESTED) The following specification is used to identify effects of weather shocks in early childhood: 2001 Yij = γk coh kij + ηk rain shockj ∗ coh kij + βXij + ij k=1997 where Yij is the outcome for individual i in pixel j coh kij is an indicator for individual i being born on year k rain shockj is an indicator for weather shocks in j pixel Xij are controls for individual i in pixel j SEs are clustered by pixel Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 29 / 63
  • 30.
    Weather Shock ExogeneityTest binary Mean Mean Difference t − stat variable (rain shock = 0) (rain shock = 1) Village characteristics male wages 318.3 303.2 15.17 1.248 female wages 41.81 45.44 -3.629 -0.980 Household characteristics and assets size 6.748 6.827 -0.0792 -0.683 poverty index 1997 712.7 705.5 7.189 0.670 owns land (ha) 1.749 1.727 0.0215 0.128 owns the house 0.940 0.936 0.00387 0.338 electricity 0.776 0.761 0.0154 0.373 water 0.0395 0.0448 -0.00533 -0.567 tv 0.617 0.471 0.147*** 4.360 vehicle 0.136 0.0599 0.0764*** 4.615 donkeys 0.421 0.384 0.0371 0.691 bullocks 0.130 0.129 0.000910 0.0158 sheep 1.695 1.606 0.0888 0.234 chickens 6.719 7.933 -1.213** -2.666 pigs 1.151 1.322 -0.171 -1.160 * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 30 / 63
  • 31.
    Weather Shock ExogeneityTest Mean Mean Difference t − stat rain shock = 0 rain shock = 1 Head of household characteristics gender (=1 if male) 0.904 0.889 0.0147 1.199 age (years) 43.11 41.79 1.319 1.965 education (years) 3.759 3.597 0.162 1.028 agricultural worker 0.701 0.738 -0.0373 -1.386 language spoken: Indigenous 0.00681 0.0357 -0.0289*** -3.469 Spanish and Indigen. 0.177 0.397 -0.220*** -4.704 Household migratory characteristics temporary migrants 0.0463 0.0392 0.00715 1.407 permanent migrants to: US 0.0392 0.0119 0.0274* 2.548 Mexico 0.0236 0.0221 0.00151 0.186 * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 31 / 63
  • 32.
    Empirical Specification -Robustness Checks Exogeneity Test for weather shocks: regression model that includes variables with different means Spatial Correlation addressed using Conley Standard Errors Test possible role of shocks occurred after 1999 Serial Correlation tests and corrections Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 32 / 63
  • 33.
    Outline 1 Background 2 Data 3 Empirical specification 4 Results 5 Mechanisms 6 The role of Progresa 7 Conclusions Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 33 / 63
  • 34.
    Results: Anthropometric indicators weight (lb) height (in) stunting anemia days sick (1) (2) (3) (4) (5) coh97 x rain shock -0.613 -0.466** . -0.0323 0.346 [0.6137] [0.2190] . [0.0624] [0.2652] coh98 x rain shock -0.837* -0.709*** 0.127* -0.0132 0.00235 [0.4806] [0.2176] [0.0722] [0.0336] [0.1813] coh99 x rain shock -0.733 -0.555** 0.140** 0.00325 -0.232 [0.4399] [0.2483] [0.0672] [0.0368] [0.1860] coh00 x rain shock -0.145 -0.426* 0.140** 0.00877 -0.00481 [0.3484] [0.2485] [0.0630] [0.0338] [0.2043] coh01 x rain shock -0.468 -0.189 0.115* 0.00671 0.0899 [0.3742] [0.2052] [0.0653] [0.0616] [0.2517] Observations 3729 3705 2777 3765 3377 R2 0.58 0.76 0.09 0.03 0.02 Mean 33.42 38.08 0.384 0.273 1.282 Controlling for household and individual characteristics Standard errors clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 34 / 63
  • 35.
    Results: Anthropometric indicators- Conley SEs weight (lb) height (in) stunting anemia days sick (1) (2) (3) (4) (5) coh97 x rain shock -0.613 -0.466** . -0.0323 0.346 (0.6565) (0.2629) (0.6) (0.2421) coh98 x rain shock -0.837* -0.709*** 0.127* -0.0132 0.00235 (0.5352) (0.2475) (0.0712) (0.0394) (0.1781) coh99 x rain shock -0.733 -0.555** 0.140** 0.00325 -0.232 (0.4924) (0.2826) (0.0720) (0.0364) (0.2170) coh00 x rain shock -0.145 -0.426* 0.140** 0.00877 -0.00481 (0.3378) (0.2514) (0.0658) (0.0368) (0.2007) coh01 x rain shock -0.468 -0.189 0.115* 0.00671 0.0899 (0.3991) (0.1867) (0.073) (0.0716) (0.2211) Observations 3729 3705 2777 3765 3377 R2 0.58 0.76 0.09 0.03 0.02 Mean 33.42 38.08 0.384 0.273 1.282 Controlling for household and individual characteristics * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 35 / 63
  • 36.
    Results: Cognitive developmentindicators (log) Peabody Test Woodcock-Mu˜oz Test n working short term visual-spatial language memory memory thinking (1) (2) (3) (4) coh97 x rain shock -0.216** -0.194* -0.000168 -0.133*** [0.0967] [0.1042] [0.0257] [0.0424] coh98 x rain shock -0.209*** -0.199*** 0.0139 -0.121*** [0.0601] [0.0644] [0.0322] [0.0335] coh99 x rain shock -0.148** -0.162*** -0.0532 -0.111** [0.0682] [0.0598] [0.0370] [0.0493] coh00 x rain shock -0.0258 -0.147** 0.0173 -0.143** [0.0672] [0.0568] [0.0374] [0.0541] coh01 x rain shock -0.225 -0.0300 -0.0755 0.0364 [0.6933] [0.0549] [0.0552] [0.0899] Observations 2835 3522 3385 2967 R2 0.33 0.32 0.48 0.38 Controlling for household and individual characteristics SE clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 36 / 63
  • 37.
    Results: Cognitive devindicators (log) - Conley SEs Peabody Test Woodcock-Mu˜oz Test n working short term visual-spatial language memory memory thinking (1) (2) (3) (4) coh97 x rain shock -0.216** -0.194* -0.000168 -0.133*** (0.1055) (0.1199) (0.0288) (0.0496) coh98 x rain shock -0.209*** -0.199*** 0.0139 -0.121*** (0.0679) (0.0817) (0.0363) (0.0398) coh99 x rain shock -0.148** -0.162*** -0.0532 -0.111** (0.0651) (0.0649) (0.0357) (0.058) coh00 x rain shock -0.0258 -0.147** 0.0173 -0.143** (0.0576) (0.0565) (0.0356) (0.0486) coh01 x rain shock -0.225 -0.0300 -0.0755 0.0364 ( 0.6910) (0.66) (0.0493) (0.1003) Observations 2835 3522 3385 2967 R2 0.33 0.32 0.48 0.38 Controlling for household and individual characteristics * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 37 / 63
  • 38.
    Results: Motor skillsindicators balance ability to ability to (seconds) walk backward walk straight (1) (2) (3) coh97 x rain shock -0.718** 0.0228 0.0140 [0.3420] [0.0162] [0.0117] coh98 x rain shock -0.164 0.0136 0.0220* [0.2609] [0.0130] [0.0118] coh99 x rain shock -0.357 0.0174 -0.0371** [0.3408] [0.0155] [0.0156] coh00 x rain shock -0.210 -0.0216 -0.00701 [0.3739] [0.0283] [0.0374] coh01 x rain shock 0.0831 -0.0308 -0.0514 [0.4352] [0.0563] [0.0509] Observations 3563 3693 3663 R2 0.33 0.16 0.24 Mean 8.286 0.891 0.843 Controlling for household and individual characteristics SE clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 38 / 63
  • 39.
    Results: Motor skillsindicators - Conley SEs balance ability to ability to (seconds) walk backward walk straight (1) (2) (3) coh97 x rain shock -0.718** 0.0228 0.0140 (0.3686) (0.0186) (0.0109) coh98 x rain shock -0.164 0.0136 0.0220* (0.2628) (0.0119) (0.0104) coh99 x rain shock -0.357 0.0174 -0.0371** (0.3452) (0.0152) (0.0134) coh00 x rain shock -0.210 -0.0216 -0.00701 (0.2811) (0.0246) (0.0351) coh01 x rain shock 0.0831 -0.0308 -0.0514 (0.3796) (0502) (0.0488) Observations 3563 3693 3663 R2 0.33 0.16 0.24 Mean 8.286 0.891 0.843 Controlling for household and individual characteristics * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 39 / 63
  • 40.
    Summary of findings Anthropometric indicators lower weight for children born in 1998 lower height for children born between 1997 and 2000. higher probability of stunting Cognitive development indicators: lower test scores in language working memory visual-spatial thinking Motor skills indicators: No evidence of effects from weather shocks Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 40 / 63
  • 41.
    Outline 1 Background 2 Data 3 Empirical specification 4 Results 5 Mechanisms 6 The role of Progresa 7 Conclusions Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 41 / 63
  • 42.
    Mechanisms Explored mechanisms throughwhich rainfall shocks may affect child physical and cognitive development: income constraints reception of formal and informal transfers: government aid, food and non-food transfers from family and neighbors contractions in food consumption: value (pesos) and amount (kg) changes in diet composition: calories, proteins, etc. child health and medicine expenditures Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 42 / 63
  • 43.
    Mechanisms: Income Effect of rainfall shocks on income at different time periods (years) Dependent Variables Coeff Std Dev Total household income (log) incomet -0.395*** (0.052) incomet+1 -0.291*** (0.052) incomet+2 -0.263*** (0.042) HH income from agriculture (log) agricultural incomet -0.276*** (0.047) agricultural incomet+1 -0.268*** (0.056) agricultural incomet+2 -0.181*** (0.044) Each line shows the result of separate regressions Controlling for household head and household characteristics Standard errors clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 43 / 63
  • 44.
    Mechanisms: Transfers Effect of rainfall shocks on formal and informal transfers at the time of the shock Variables Binary Coeff Std Dev =1 if household received government aid food aidt 0.047** (0.021) other aidt 0.006 (0.034) =1 if household received informal transfers from familyt -0.042 (0.043) from neighbort -0.028*** (0.009) Each line shows the result of separate regressions Controlling for household head and household characteristics Standard errors clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 44 / 63
  • 45.
    Mechanisms: Food consumption Effect of rainfall shocks on food consumption (log) at different time periods (years) Food consumption is normalized using Adults Equivalents (AE) Variables Mean Std Dev food consumptiont (pesos) -0.100*** (0.035) food consumptiont+1 (pesos) -0.115*** (0.034) food consumptiont+2 (pesos) -0.149*** (0.055) food consumptiont (kg) -0.027 (0.036) food consumptiont+1 (kg) 0.003 (0.030) food consumptiont+2 (kg) 0.042 (0.057) Each line shows the result of separate regressions Controlling for household head and household characteristics Standard errors clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 45 / 63
  • 46.
    Mechanisms: Diet composition Effect of rainfall shocks on diet composition (log) at different time periods (years) Food consumption is normalized using Adults Equivalents (AE) Variables Coeff Std Dev tortilla consumptiont (pesos) 0.132** (0.054) tortilla consumptiont+1 (pesos) -0.085 (0.064) tortilla consumptiont+2 (pesos) -0.218*** (0.069) animal consumptiont (pesos) -0.052 (0.085) animal consumptiont+1 (pesos) -0.145* (0.075) animal consumptiont+2 (pesos) -0.171** (0.076) fruit and vegetable consumptiont (pesos) -0.200*** (0.057) fruit and vegetable consumptiont+1 (pesos) -0.078 (0.049) fruit and vegetable consumptiont+2 (pesos) -0.143** (0.056) Each line shows the result of separate regressions Controlling for household head and household characteristics Standard errors clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 46 / 63
  • 47.
    Mechanisms: Health andmedicine expenditures Effect of rainfall shocks on child health and medicine expenditures (log) at different time periods (years) Variables Coeff Std Dev children reported sick children sickt (% in the HH) 0.011 (0.022) children sickt+1 (% in the HH) 0.025 (0.027) children sickt+2 (% in the HH) 0.016 (0.031) medicine expenditures (log) medicine expenditurest -0.361*** (0.121) medicine expenditurest+1 -0.303** (0.113) medicine expenditurest+2 0.043 (0.128) Each line shows the result of separate regressions Controlling for household head and household characteristics Standard errors clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 47 / 63
  • 48.
    Summary of findings(mechanisms) income contractions persistent over the three periods t, t + 1, t + 2 decrease of total income from 40% (t) to 26% (t + 2) decrease of agricultural income from 27% (t) to 18% (t + 2) contractions in value of food consumption over three periods 10% (t), 11% (t + 1), and 15% (t + 2) changes in diet composition, measured as log consumption (pesos): consumption of tortillas increases immediately after the shock (13%) decreases in period t + 2 (22%) decrease in consumption of animal proteins (14% to 17%) decrease in consumption of fruit and vegetables (14% to 20%) Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 48 / 63
  • 49.
    Summary of findings(mechanisms) child health reported by mothers, does not seem to be significantly affected medicine expenditures significantly decrease 36% in period (t) and 30% in (t + 1) probability of receiving formal and/or informal transfers, immediately after the shock: increases of government food aid (5 percentage points) decreases of transfers received from neighbors (3 perc. points) Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 49 / 63
  • 50.
    Outline 1 Background 2 Data 3 Empirical specification 4 Results 5 Mechanisms 6 The role of Progresa 7 Conclusions Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 50 / 63
  • 51.
    The Role ofProgresa Progresa: poverty alleviation program in rural Mexico conditional cash transfer (CCT), conditional on children’s school attendance and periodic family health check-ups Pilot in 1997-2000 - clustered randomized experiment with treatment at the village level beneficiaries selected based on a poverty index at the household level beneficiary households receive nutritional supplements and cash transfers (based on number, age and gender of school age children) Monthly transfers represent about 20% of the monthly consumption of poor households We investigate the potential mitigating effects of Progresa Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 51 / 63
  • 52.
    Role of Progresa:Anthropometric indicators weight (lb) height (in) stunting anemia days sick (1) (2) (3) (4) (5) Rain shock -0.516 -0.467** 0.126*** 0.0297 0.0847 [0.4104] [0.2298] [0.0357] [0.0254] [0.1768] Treatment -0.181 -0.0598 0.0118 0.0510* -0.0997 [0.4066] [0.2182] [0.0303] [0.0307] [0.1689] Treatment x Rain shock -0.702 -0.255 0.00271 -0.0407 0.0485 [0.5705] [0.3153] [0.0505] [0.0374] [0.2321] Observations 259 259 259 258 259 R2 0.06 0.06 0.09 0.01 0.01 Mean 33.92 38.29 0.301 0.261 1.380 Robust Standard errors [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 52 / 63
  • 53.
    Role of Progresa:Cognitive development indicators Peabody Test Wodcoock-Mu˜oz Test n language working short term visual-spatial skills memory memory thinking (1) (2) (3) (4) Rain shock -0.159** -0.137** -0.100** -0.139*** [0.0762] [0.0684] [0.0406] [0.0439] Treatment 0.0330 -0.00983 -0.0419 -0.0459 [0.0724] [0.0650] [0.0402] [0.0452] Treatment x Rain shock -0.0197 -0.0463 0.0592 0.0466 [0.0976] [0.0864] [0.0556] [0.0606] Observations 253 259 259 259 R2 0.05 0.06 0.03 0.06 Controlling for household and individual characteristics Standard errors clustered by gridcell [in brackets] * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 53 / 63
  • 54.
    The Role ofProgresa: discussion Fernald and Gertler (2005) analyze the effects of Progresa on some of these outcomes compare the RCT localities with respect to a synthetic control find significant effects on anthropometric and motor skills, but not on cognitive abilities no difference between original treatment localities (begin to receive CCT in 1998) and control localities (added to the program in 2000) Argument: those living in control localities “catch-up” given that they begin to receive the benefits on 2000 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 54 / 63
  • 55.
    The Role ofProgresa: RD analysis Use RD to identify if there are medium term benefits of Progresa and assess its possible mitigating effects RD with respect to the poverty index used to select eligible households index based on household’s characteristics and asset ownership Progresa Beneficiaries Progresa Recipients 2001 Progresa Recipients 2002 1 1 .8 .8 (mean) recipient3 (mean) recipient4 .6 .6 .4 .4 .2 .2 0 0 -30 -20 -10 0 10 20 -30 -20 -10 0 10 20 x_pmt x_pmt Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 55 / 63
  • 56.
    The Role ofProgresa: RD analysis Effects on anthropometric variables Weight (lb) espacio espacio espacio espacioHeight (in) Weight (lb) Height (in) 44 50 42 40 40 38 30 36 20 34 -30 -20 -10 0 10 20 -30 -20 -10 0 10 20 x_pmt x_pmt Rain_shock=0 Rain_shock=1 Rain_shock=0 Rain_shock=1 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 56 / 63
  • 57.
    The Role ofProgresa: RD analysis Effects on cognitive variables Language espacio espacio espacio espacioWorking memory Peabody Language Test Long-term Memory (Woodcok-Johnson Test 1) 4 4 3.5 3.5 3 3 2.5 2.5 2 2 1.5 1.5 -30 -20 -10 0 10 20 -30 -20 -10 0 10 20 x_pmt x_pmt Rain_shock=0 Rain_shock=1 Rain_shock=0 Rain_shock=1 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 57 / 63
  • 58.
    Outline 1 Background 2 Data 3 Empirical specification 4 Results 5 Mechanisms 6 The role of Progresa 7 Conclusions Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 58 / 63
  • 59.
    Conclusions We provide evidence that children affected by ENSO-related weather shocks during their early stages of development are affected on the medium-term on Cognitive abilities (language, working memory, and visual spatial integration) Anthropometric indicators (weight and height) The analysis shows that some of the mechanisms that could drive these results are Persistent negative effects on household income Persistent negative effects on food consumption Changes in diet composition The conditional cash transfer program shows no mitigating effects for households affected by the shocks that received the treatment Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 59 / 63
  • 60.
    Conclusions: Perspectives andPolicy Implications This study represents test-bed to understand climate change impacts (i.e. extreme events) direct and indirect role of weather factors on cognitive/physical development not well understood (i.e. temperature, stress) Adaptation studies should include human cognitive/physical development particularly relevant in rural areas of developing countries Socioeconomic development poverty reduction interventions should include vulnerability reduction component future of weather index insurance in rainfed-agriculture communities Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 60 / 63
  • 61.
    Standard Errors: Anthropometricindicators - BACK weight (lb) height (in) stunting anemia days sick (1) (2) (3) (4) (5) coh97 x rain shock 0.6137 0.2190 . 0.0624 0.2652 0.6565 0.2629 0.6 0.2421 (0.6192) 0.2881 0.0571 0.2301 coh98 x rain shock 0.4806 0.2176 0.0722 0.0336 0.1813 0.5352 0.2475 0.0712 0.0394 0.1781 0.6177 0.2974 0.0709 0.0393 0.1607 coh99 x rain shock 0.4399 0.2483 0.0672 0.0368 0.1860 0.4924 0.2826 0.0720 0.0364 0.2170 0.5619 0.3272 0.0806 0.0343 0.1896 coh00 x rain shock 0.3484 0.2485 0.0630 0.0338 0.2043 0.3378 0.2514 0.0658 0.0368 0.2007 0.3627 0.2852 0.0725 0.036 0.1745 coh01 x rain shock 0.3742 0.2052 0.0653 0.0616 0.2517 0.3991 0.1867 0.073 0.0716 0.2211 0.3959 0.1946 0.0844 0.0751 0.1998 Robust standard errors; Conley SEs, cutoff=1decimal deg; Conley SEs, cutoff=2 decimal deg. Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 61 / 63
  • 62.
    Standard Errors: Cognitivedev indicators (log) - BACK Peabody Test Woodcock-Mu˜oz Test n long term short term visual-spatial language memory memory thinking (1) (2) (3) (4) coh97 x rain shock 0.0967 0.1042 0.0257 0.0424 0.1055 0.1199 0.0288 0.0496 0.12 0.1187 0.0287 0.0516 coh98 x rain shock 0.0601 0.0644 0.0322 0.0335 0.0679 0.0817 0.0363 0.0398 0.0721 0.0907 0.0382 0.403 coh99 x rain shock 0.0682 0.0598 0.0370 0.0493 0.0651 0.0649 0.0357 0.058 0.0612 0.0735 0.0345 0.0592 coh00 x rain shock 0.0672 0.0568 0.0374 0.0541 0.0576 0.0565 0.0356 0.0486 0.046 0.0502 0.0381 0.0423 coh01 x rain shock 0.6933 0.0549 0.0552 0.0899 0.6910 0.66 0.0493 0.1003 0.6822 0.0651 0.0388 0.0944 Robust standard errors; Conley SEs, cutoff=1decimal deg; Conley SEs, cutoff=2 decimal deg. Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 62 / 63
  • 63.
    Standard Errors: Motorskills indicators- BACK balance ability to ability to (seconds) walk backward walk straight (1) (2) (3) coh97 x rain shock 0.3420 0.0162 0.0117 0.3686 0.0186 0.0109 0.3064 0.0208 0.0097 coh98 x rain shock 0.2609 0.0130 0.0118 0.2628 0.0119 0.0104 0.2292 0.0118 0.0081 coh99 x rain shock 0.3408 0.0155 0.0156 0.3452 0.0152 0.0134 0.3557 0.0156 0.0135 coh00 x rain shock 0.3739 0.0283 0.0374 0.2811 0.0246 0.0351 0.2735 0.0236 0.0353 coh01 x rain shock 0.4352 0.0563 0.0509 0.3796 0502 0.0488 0.3306 0.0432 0.0536 Robust standard errors; Conley SEs, cutoff=1decimal deg; Conley SEs, cutoff=2 decimal deg. * p < 0.10, ** p < 0.05, *** p < 0.01 Aguilar & Vicarelli (Harvard, Yale) ENSO and Mexican children November 29, 2012 63 / 63